All family financial plans share the goal of balancing income and expenses to alleviate financial stress and achieve financial goals. However, there is not a one-size-fits-all approach. Dual-income households require a slightly different lens. Among married-couple families in 2023, both spouses were employed in nearly 50% of families, according to the U.S. Bureau of Labor Statistics.

Regardless of income level or relationship status, every client should receive a financial strategy that meets their financial objectives. For a couple, there may be one person who manages all finances and the relationship with their financial advisor, while the other party may be the primary manager of other household items like childcare. Regardless of who takes on each role, both individuals must be involved in the planning process because the entire household is affected by the financial plan.

Here are three considerations for serving dual-income households:

1) Income instability. Dual-income families should have some flexibility in their financial plans. With two incomes, there is a possibility that one partner could be laid off or reduce work hours to care for a new child or aging parent. Maintaining a buffer in case a partner's income is reduced is essential.

Also, it is important for the lower paid partner to be taking out enough in taxes so there are no surprises during tax season. That may mean the lower paid partner withholds more than their income might justify.

2) Financial decision-making. Finding a strategy that keeps everyone on the same page is vital. When onboarding dual-income clients, construct an action plan incorporating both perspectives. However, the role of an advisor can become like that of a therapist. If you're hearing conflicting information, try to find a middle ground and remind clients of their major goals and action plan.

3) Life-changing events. Clients tend to prioritize their expenses and asset distribution based on their current life stages. Younger households may focus more on paying off debt and saving for expenses like a new home. When children are added to the mix, priorities can shift toward childcare and may leave a parent without an income, which would trigger a change to the financial plan. And of course, there's saving for retirement and children's education. This is why a financial plan must be adaptable.

Some strategies, such as allocating funds from each paycheck, can benefit both dual and single-income households, but it's important to recognize the unique holistic needs of both circumstances. Clear communication and readiness for unexpected or anticipated life changes should guide the creation and continuous adaptation of a financial plan and will help clients secure and sustain success.

Michael S. Ross is a financial advisor and owner of Cornerstone Financial Group. Ross is a 19-year MDRT member with five Top of the Table and 10 Court of the Table qualifications and is a seasoned professional on retirement, estate planning and insurance.

This article is for educational purposes only—not to be relied upon as financial, tax or legal advice. The opinions expressed and the materials provided are for general information and should not be considered a solicitation for the purchase or sale of any security.