If you’re like most parents, you only want what’s best for your children. Unfortunately, we cannot know what the future holds, but that doesn’t mean that you can’t prepare for those rainy days and unforeseen circumstances. Following, are four great ways you can set your child up for success regardless of what life throws your way.
1- Open Up a Savings Account
Many banks offer youth savings accounts, which allow you to put money aside for your child’s future as often as you want. You could consider saving up for their first car, college tuition, or a graduation gift. If possible, consider putting aside twenty five dollars a week. By the time your child reaches high school, you will have a substantial amount of money saved up in order to help them as they figure out their next steps in life. You can even get your child involved in growing their savings account by allowing them to make deposits and performing odd jobs around the house for money. Not only will this teach your child the value of hard work, but they will also learn how to become financially responsible as they grow.
2- Make a Will
Nobody wants to think about what could happen if you or someone you love dies unexpectedly. Unfortunately, these things happen all the time, and no one is immune to this possibility. The last thing you want is your loved ones not knowing your final wishes and how you preferred your possessions and financial affairs to be handled. Write a will now while you are clear-headed and not dealing with advanced age or serious medical issues. By taking this step and creating your will ahead of time you’ll be able to focus on this important process with a level head and prevent your children from having to deal with such a stressful task while mourning your loss.
3- Consider Investing in a College Savings Plan
If you’re planning on sending your child to college after they graduate high school, consider investing in a college savings plan. A college savings plan is an efficient way to guarantee your child’s tuition will be paid for if they plan to attend a public university. Another benefit of investing in a savings plan is that they are exempt from federal taxation and are an easy way to prepare for your child’s future. Make an appointment with your local bank and see what options are available for you.
4- Be a Good Financial Role Model
Most children learn their financial habits early in life by watching how their parents and other adults handle their financial affairs. One of the most powerful things you can do as a parent is to provide a good example of what it means to be financially responsible. By having conversations about money early and often, you will help your child learn what it takes to be financially secure, and how to determine what is a want from what is a need.
In this same aspect, it’s important to pay off any outstanding debts you may have. Debt can burden the entire family and compromise the safety and security of your children. By being responsible with your finances and eliminating your debt, you will be in a better position to care for your children and prepare for their successful future.