Family & Life Events Terms

ABLE to Work is a provision that lets employed people with disabilities contribute extra money to their ABLE savings account beyond the standard annual limit.

Adoption assistance is an employer benefit that helps cover the costs of adopting a child, with a portion potentially excluded from the employee's taxable income up to IRS limits.

The adoption tax credit offsets qualified adoption expenses such as agency fees, court costs, and travel, up to an annually adjusted limit — and under recent law a portion of it is refundable.

Adult day care costs are the fees for supervised daytime programs that provide care and activities for older or disabled adults while giving family caregivers a break.

Aging in place is the choice to remain in one's own home while growing older, often with home modifications and in-home support instead of moving to a care facility.

An allowance for kids is a small, regular sum of money parents give a child to teach saving, spending, and budgeting habits.

The applicable federal rate is a minimum interest rate the IRS publishes each month that family and other private loans must generally charge to avoid unwanted tax consequences.

Assisted living costs are the monthly expenses of a residence that provides housing plus help with daily tasks for older adults who don't need full nursing care.

An authorized user is someone added to another person's credit card who can spend on the account but has no legal duty to pay — the account's history often appears on the user's credit report, which can help build credit.

A new-baby budget is a plan for the costs of having and raising an infant, from medical bills and baby gear to childcare and any lost income during leave.

Parental financial support, sometimes called the Bank of Mom and Dad, is money parents give or lend adult children for things like housing, education, or a home down payment.

Blended-family finances refers to managing money across a household that includes stepparents, stepchildren, and children from prior relationships, which raises questions about shared expenses and inheritance.

Boomerang kids are adult children who move back in with their parents, usually to save money or after a job loss or other life change.

Career-break planning is preparing financially for an intentional pause from work, such as saving ahead and arranging health insurance and retirement contributions during the gap.

Caring for aging parents refers to the time and money adult children spend supporting elderly parents, from daily help to covering medical or long-term care costs.

A child may qualify for Social Security benefits based on a parent's earnings record when that parent retires, becomes disabled, or dies, generally until the child reaches adulthood.

Childcare costs are the ongoing expenses of paying someone to care for a young child, such as daycare, a nanny, or after-school programs, while parents work.

A cohabitation agreement is a written contract between unmarried partners living together setting out how property, income and expenses are handled, and what happens to them if the relationship ends.

Combining finances is the process of merging some or all of a couple's money, such as joint accounts and shared budgets, while deciding how much to keep separate.

A conservatorship is a court-appointed arrangement giving one person authority to manage the finances of an adult who is unable to do so themselves.

A cosigner is someone who signs onto another person's loan and becomes equally and legally responsible for the debt if the primary borrower doesn't pay.

The cost of raising a child is the total amount parents spend from birth through adulthood on things like housing, food, childcare, healthcare, and education.

This compares a custodial 529, legally owned by the child through an UTMA/UGMA transfer, with a parent-owned 529 — a distinction that affects control of the money and how financial aid formulas treat it.

A custodial account is an account an adult manages on behalf of a minor, with the assets legally belonging to the child once transferred.

A death certificate is the official government document confirming a person's death, needed to settle their estate and claim benefits.

A dependent care FSA lets you set aside pre-tax pay to cover eligible childcare or adult dependent care so you can work.

Under federal law, adult children can generally stay on a parent's health insurance plan until they turn 26, even if they are married or financially independent.

Disaster financial recovery is the process of rebuilding your finances after an event like a flood, fire, or storm, including filing insurance claims, accessing aid, and replacing lost documents.

Disinheritance is deliberately leaving a person, often a relative who would otherwise inherit, out of your will or estate plan.

Social Security benefits a divorced person may collect on an ex-spouse's earnings record, generally if the marriage lasted at least 10 years and other rules are met.

Domestic partner benefits are employer perks, such as health coverage, extended to an employee's unmarried partner, though their value may be treated as taxable income unlike spousal benefits.

Elder care costs are the expenses of supporting an older adult's daily needs, from in-home help to assisted living or nursing care.

Elder financial abuse is the illegal or improper use of an older person's money or property, often by a caregiver, family member, or scammer.

Empty-nest finances refers to the money shift parents experience once children leave home, often freeing up cash flow to boost retirement savings or pay down debt.

An engagement ring budget is the amount a person decides to spend on an engagement ring, ideally set by what they can comfortably afford rather than by rules of thumb.

Equitable distribution is the method most states use to split marital property in a divorce, dividing it fairly based on each spouse's circumstances rather than always down the middle.

An ethical will is an informal document that passes on your values, life lessons, and hopes to loved ones, rather than money or property.

The Family and Medical Leave Act is a federal law that lets eligible employees take unpaid, job-protected leave for certain family and medical reasons, such as a serious illness or a new child.

A family money meeting is a regular, planned conversation among family members to discuss budgets, goals, and financial decisions openly.

Financial boundaries are the limits a person sets around lending, giving, or discussing money with family and friends to protect their own finances and relationships.

Financial infidelity is when one partner hides money matters from the other — such as secret debt, spending, or accounts — which can damage trust in a relationship.

First-job finances covers the money decisions a young person faces when starting to earn, such as understanding a paycheck, taxes, and beginning to save.

Funeral costs are the expenses of a burial or cremation, including the service, casket or urn, and cemetery or crematory fees.

An arrangement that sets money aside in advance to cover a person's funeral and burial costs.

Gap year finances covers the money planning for a year off between high school and college, including saving, working, and how the break may affect financial aid eligibility.

Gray divorce is a divorce between older spouses, typically over 50, which brings distinct challenges around dividing retirement assets and rebuilding finances later in life.

A rent guarantor is a person, often a parent, who legally agrees to pay a tenant's rent if the tenant cannot, giving the landlord added assurance.

Home health care costs are the expenses of receiving medical or personal care at home from aides or nurses, an alternative to moving into a facility.

Hospice care focuses on comfort rather than cure for people near the end of life, and it is often largely covered by Medicare, Medicaid, or private insurance.

Income shifting is moving income from a taxpayer in a high tax bracket to one in a lower bracket — often between family members or business entities — to reduce the overall tax bill within legal limits.

Injured spouse relief lets you recover your share of a joint tax refund that was seized to pay your spouse's separate debts, such as their past-due child support or defaulted student loans.

Innocent spouse relief can free you from tax, penalties, and interest caused by errors your spouse or ex-spouse made on a joint return that you did not know about and had no reason to know about.

An intrafamily loan is a formal loan between family members, often documented in writing with interest, which can offer lower rates than a bank while meeting IRS requirements.

A joint account is a bank or investment account owned by two or more people, each with full rights to deposit and withdraw the money.

The kiddie tax is a set of rules that taxes a child's unearned income — such as interest, dividends, and capital gains — above a small annual threshold at the parents' higher tax rate, closing the loophole of parking investments in kids' names.

Lending money to family is giving a loan to a relative, which can strain relationships and carry tax and repayment complications if not handled carefully.

Marital property is the assets and debts a couple acquires during their marriage, which are generally divided between them if they divorce.

Marriage and money covers how couples handle finances together, including combining accounts, sharing goals, dividing bills, and navigating the tax and legal effects of being married.

A marriage bonus occurs when a couple owes less tax filing jointly than they would as two single filers — most common when one spouse earns most of the household income.

A marriage penalty occurs when a couple owes more total tax filing as a married couple than they would as two single filers — most common when both spouses earn similar high incomes.

Military family finances covers the money matters unique to service members and their families, such as special pay, frequent moves, and military benefits.

A multigenerational household is a home where three or more generations, such as grandparents, parents, and children, live together and often share expenses.

The nanny tax is the Social Security, Medicare, and unemployment taxes a household must pay when it employs a nanny, housekeeper, or other household worker and pays them above the IRS annual threshold.

Nursing home costs are the often substantial expenses of round-the-clock care in a licensed facility for someone who can no longer live independently.

Paid family and medical leave is a state-run insurance program, funded by payroll contributions, that replaces part of a worker's wages during leave for a new child or a serious health condition. Some states run one and others do not, which is what distinguishes it from the federal unpaid job protection and from an employer's own paid policy.

Parental leave is time off granted to a parent to care for a new child, which may be paid or unpaid depending on the employer and applicable laws.

A pension election is the one-time choice a retiree makes about how their pension is paid, such as a single life payout, a survivor option, or a lump sum.

Pet ownership costs are the ongoing expenses of caring for a pet, including food, veterinary care, supplies, and possible emergency treatment.

A legal arrangement that sets aside money and instructions to care for an owner's pets after the owner dies or can no longer do so.

A postnuptial agreement is a contract made after a couple is already married that spells out how their assets and debts would be handled in a divorce or death.

Funeral preplanning is arranging and sometimes prepaying for your own funeral in advance so your family faces fewer decisions and costs later.

Relocation finances covers the costs and money decisions of moving for a job, such as moving expenses, cost-of-living differences, and any employer relocation package.

A representative payee is a person or organization appointed to receive and manage government benefits on behalf of someone who cannot manage the money themselves.

Respite care is short-term, temporary care for a dependent person that gives their regular family caregiver time to rest or handle other responsibilities.

The sandwich generation refers to adults who financially support both their own children and their aging parents at the same time.

Separate property is what one spouse owned before the marriage or received individually by gift or inheritance, and it usually stays with that spouse in a divorce.

The Servicemembers Civil Relief Act is a federal law that gives active-duty service members financial protections, such as capped interest rates and limits on evictions and foreclosures.

A trust whose existence or terms are kept from the beneficiaries for a time, often so knowledge of the money does not sway young heirs.

Single-parent finances refers to managing a household's money on one income, which often means tighter budgeting and a greater need for emergency savings and life insurance.

A special needs trust holds assets for a person with disabilities in a way that provides for them without disqualifying them from means-tested government benefits.

Stay-at-home parent finances covers the money considerations of a household with a non-earning caregiver, including budgeting on one income and insuring the caregiver's unpaid work.

A survivor financial checklist is a step-by-step list of the money tasks a surviving family member should handle after a loved one dies, such as locating accounts and claiming benefits.

TANF, Temporary Assistance for Needy Families, is a federal program that provides temporary cash aid and support services to low-income families with children.

Teaching kids about money is the practice of building children's financial skills — saving, spending wisely, and understanding earning — through everyday lessons and example.

A teen checking account is a bank account for a minor, typically jointly owned with a parent, that lets a teenager practice managing money with some oversight.

Trump accounts are tax-favored savings accounts for children created by the 2025 tax law, with contributions invested on the child's behalf and a one-time federal seed deposit for eligible newborns.

A trusted contact person is someone you name on an investment account whom the firm may reach out to if it suspects financial exploitation or cannot reach you. Naming one gives that person no authority over the account.

A UGMA account is a custodial account under the Uniform Gifts to Minors Act that holds financial assets such as cash and securities for a minor until they reach adulthood.

Unmarried couples finances covers the extra planning partners without marriage need — like titling property, naming beneficiaries, and legal documents — because they lack the automatic protections marriage provides.

A UTMA account is a custodial account under the Uniform Transfers to Minors Act that lets an adult hold nearly any type of asset for a child until the child reaches the age set by state law.

Veterans benefits are the range of programs the government offers former service members, including healthcare, disability pay, education aid, and home loan support.

A wedding budget is a plan for how much a couple will spend on their wedding and how the money is divided among the venue, food, attire, and other expenses.

Wedding insurance covers financial losses from problems that disrupt a wedding, such as a vendor failing or the event being canceled.

WIC is a federal program that provides food, nutrition education, and healthcare referrals to low-income pregnant women, new mothers, and young children.

Widowhood finances refers to the money decisions a surviving spouse faces after a partner's death, including settling the estate, adjusting income, and updating beneficiaries.

A will contest is a formal legal challenge to the validity of a will, usually brought by someone who believes it does not reflect the deceased's true wishes.