As a parent, you want what’s best for your children. You love them unconditionally, and you strive to encourage them to pursue their goals so they can lead a productive, comfortable life. Unfortunately, there may be financial barriers that could get in the way as you raise your family. You can help minimize these barriers - or even prevent them completely - by familiarizing yourself with the basics of planning for your children’s future.
Start Saving ASAP
Approximately 69% of American adults have savings accounts with less than $1,000, and more than 50% of women have no savings at all. If you want your child to avoid becoming part of these statistics, start saving. It’s never too early to create a savings account for your kids, whether you decide to create individual accounts for them or create a separate savings account for their expenses in your own name. You don’t need to determine a specific purpose for your kids’ savings accounts right away; just set aside the money and decide what to do with it when you’re ready.
Prepare for Medical Expenses
It’s important to ensure that you and your children are covered if an unexpected illness or injury strikes. Health insurance helps you afford preventative care, such as annual physicals. If you take care of your family’s health before issues arise, it may help your kids avoid complications from conditions that could have been prevented.
You should also carry dental insurance and vision insurance for your kids. Decayed teeth may result in costly treatments when your children become adults and are responsible for their own care. Poor vision may prevent your children from achieving their goals by making it difficult for them to focus on their textbooks or teachers in school.
In addition to enrolling your children in medical plans, you may also want to open a Flexible Spending Account to cover costs that aren’t paid by insurance.
Save for College
It’s no secret that a college education is expensive, but were you aware that your child might rack up a bill as high as $334,000 in just four years? Cheaper options are definitely available, but if your child has his or her heart set on an upscale private university, it can be costly. Some college savings accounts let you save tax-free funds for your children. You earn interest on your money while it’s in the account, and you don’t pay a fee or taxes on the funds until the money is actually withdrawn for school.
What an MBA Can Do for Your Career
Career advancement these days can seem difficult, but one tool that has been extremely effective in business has been the MBA. Going back to school is an important tool that you can use to reinvest in yourself and ultimately provide greater financial stability to your family. An MBA is a surefire way to increase your salary, but it also comes with some other positive benefits. An increase in overall job prospects and a stronger knowledge base of the business world will impact future opportunities for the rest of your career. These days, you can also pursue an advanced degree through online programs that fit your schedule.
Explore Options Beyond Checking and Savings Accounts
It’s important to have at least one checking account and one savings account, but after a while, you may find it’s better to allocate some of your funds to options such as CDs, stocks, or bonds. It can be confusing to figure out which options are best for your family, so it’s a good idea to meet with a trusted financial planner from Purposeful Financial and Legacy Planning before you commit to a savings plan. A financial planner will evaluate your current expenses and help you estimate future expenses so that you can create a money-management plan that is easy to maintain.
Planning for your children’s future requires you to dig deep into your finances, avoid being irresponsible with money, and predict what costs your family may incur in the future. Instead of wading through a bunch of money-saving options on your own, consider learning the basics from a financial planner.
Thanks to guest author, Nicole Rubin of Insureabilities, for the information in this post.
One of the best ways to plan for your family’s future is through a financial planner. At Purposeful Financial and Legacy Planning, we are dedicated to helping individuals lay the foundation for a stable financial future. For more information or a consultation, reach out today! 970-443-1873