Raising children today goes beyond just feeding them, dressing them up and sending them to a good school. Parents also need to ensure that their kids have financial resources that they can use when they grow up into teens and eventually adults.
Kids have different financial needs and parents should know these so they too can meet them. These include savings accounts, education plans, insurance and investments.
Many parents open a savings account in the first year of their child. Their strategy is to put a specific amount to that bank account each month once they receive their monthly pay. If you have a little extra, you can also add more to the regular amount you deposit every month. This is a good way to save for a rainy day.
When the amount gets bigger, an option here is to make the savings account into a long-term fixed deposit. This way, it can grow bigger and mature over the years.
Having a savings account for your child also involves less risk compared to investing in other products hence, every parent must learn to practice this as early as possible.
An insurance policy is another necessity that parents should greatly consider. This will protect your children in any eventuality and will ensure that they have something to support their financial needs including their education in case they lost their parents.
Getting an insurance, however, requires a little research to be sure you’re getting a policy from a company with a good reputation. You can do your research online or make a call to check how a company entertains phone inquiries which should give you a hint of their customer service. You must also choose the right insurance policy to determine that you can afford to pay the monthly premium moving forward. Take into account inflation and your other financial obligations such as personal loans and mortgages.
As your child grows up, you will also have save for his or her college education. Starting early is the best option so you save more money.
In the U.S., college education can be expensive but there are financial institutions and universities as well that offer college funds with affordable payment terms. What’s important is you check the local programs of colleges and universities your child is considering and make a realistic plan based on the school and courses.
It is not worth to be complacent today. Every parent must find a way to earn a living to provide for the family and ensure their child’s future, said a Los Angeles bankruptcy lawyer Kevin Todd Simon from the Simon Resnik Hayes law firm. Life is not always smooth-sailing because there will be ups and downs along the way but if you’re prepared financially, you won’t have to worry so much about providing support for your children.
Times are tough these days the reason why it is necessary to save and invest one’s hard earned money for your future. It will not only give you peace of mind knowing that you have savings for you and your children but it will definitely secure their future as well. Financial discipline, therefore, is a must!