Family Plans: Cell Phones, Insurance and More…

There are plenty of benefits to the family, including the ones we normally think of like support, a sense of belonging, and many happy memories. But let’s put those intangibles aside for one minute and talk about something else: money. There are financial benefits of being part of a family as well. Many companies offer family plans for their products and services, making the overall cost less expensive per person.

Cell phone family plans are a great example of this economic advantage. The average basic cell phone plan for an individual starts around $50.00 per month; the price goes up as features are added. Compare that to the average basic family plan at $120.00 per month, which breaks down to $30.00 per person for a family of four. The lower cost is evident. An added bonus not reflected in the cost is that by their very nature, many family plans include free calls to other family members. For a family that talks a lot this can mean huge savings.

My family takes advantage of favorable family rates on our auto insurance. We have four adults on our policy including our two oldest children, and their rates are substantially lower by being on our policy. Technically this is not a “family plan”, but our auto insurance company, like most, allows adult children to be carried on their parent’s policy until age twenty-one. That time can be extended for children who are full-time students. My son will need to get his own policy next year, but for the four years on our policy he will have spent nearly 10% less. Family plans are available for health, dental, and vision insurance, and in some cases life insurance as well.

One of my favorite ways to take advantage of family savings is hunting for vacation deals. Major resorts, theme parks, and family destinations regularly offer better rates for families. One disadvantage is the tendency for the reduced rates to only apply to a family of four. Standard rates are typically charged for extra family members. But if you are flexible and willing to dig, there are many vacation destinations that run family specials, especially during slower periods. Of course, there are restaurants where kids eat free as well as museums and amusements which give one free child admission with every adult admission purchased.

Finally, at tax time our children are worth deductions. Lots and lots of deductions. Lower income families with kids can take advantage of the Earned Income Credit up until the children turn eighteen. A good tax advisor will know how to take advantage of the benefits of children.

So smile mom and dad, those kids are worth something!