What makes a good parent?
You could say someone who works hard to meet his or her children’s needs is a good parent. That means making sure their child has food to eat, clothes to wear, and a house to live in.
But are those enough? One survey revealed the number one concern for a lot of parents. And it’s children not reaching their full potential due to lack of education.
Of course, it’s only natural for parents to want to secure a stable financial future for their children. The problem is, some don’t know how to go about it. Does that sound like you?
If yes, don’t worry. Here are 5 ways you can secure your kids’ financial future.
1. Have Life Insurance Policy
Many people are uncomfortable talking or even thinking about death. But when you have children, you need to think about what would happen to them if you or your partner passes away.
The right policy gives your life insurance beneficiaries enough money for the future. It’s better if you and your spouse both get term life insurance. And each policy should be ten times that of your/your partner’s income.
2. Set Up a College Fund
How do you plan to pay for your child’s college expenses?
While both are good ways to supplement your income, the best way to save money for your kids future is to do it asap. Start when your child’s a newborn or earlier. The sooner you do it, the bigger his or her college funds will be.
3. Don’t Forget to Secure Your Future
On a plane, they will always tell you that in case of an emergency, put your mask on before you put one on your child. The same thing applies when investing in the future for kids.
What that means is you should get rid of your debt, file a will, and plan for retirement. The last one is especially important.
When your finances are stable, you can rest easy. That’s because you know your child won’t have that financial burden caring for you in your old age.
4. Know Your Child’s Needs and Wants
Your dreams for your children may not be the same with what they have in mind. You may want them to be doctors or lawyers. But you can’t force them to do something they don’t want to do.
The thing is supporting your kids’ dreams also mean more expenses. It could mean extra classes, extracurricular activities, and so on. You’ll have to do your research, so you’ll know how much money you need to put away for your kids to achieve their dreams.
You can also check out sites such as Give Your Kid a Million. This will give you an idea of how other parents plan for their children’s future.
5. Involve Your Children in Financial Planning
Teach them how to save and responsibly spend money. Talk to them about how you earn money. Give them lessons on how to budget and how money moves through your household.
Of course, you don’t want to overwhelm them with facts. Someone as young as 3 years old wouldn’t care about mortgages and car insurance. You can wait a bit when they’re older to involve them in financial planning.
But as soon as you know they’re able to understand how money works, talk to them. And start teaching them skills that will help them secure their financial future.
Ready to Secure Your Kids’ Future?
Securing your kids’ financial future has a lot to do with starting early. Save money now, get insurance as soon as you can, and teach them how to be responsible with handling money.
For more parenting advice and tips, don’t forget to check out our family articles.