RoxanneIt’s never too early to start planning for your child’s future. The earlier you do it, the easier it will be to achieve your goals.
What’s your likely overall goal? It may not be to make them a millionaire before they enter the workforce. Being able to give them a savings cushion, however, would be nice.
As long as they have some savings, they can hit college running or start their own business. Follow these tips from the start, and your children should have such options by the time they hit adulthood.
Get Life Insurance Before They’re Born
What would happen if you weren’t around to support your family? How would they survive on limited income? Such are thoughts that no one wants to ponder, but you should before your child is born.
How can you alleviate these concerns? By getting life insurance.
While planning for your child’s birth has enough expenses on its own, that’s no excuse to avoid life insurance. You don’t need to pay hundreds of dollars per month for a policy, as just $5 a month will get you started.
Bestow offers life insurance starting at $5 monthly. While that’s certainly affordable, the company also makes it super-simple to get started.
You don’t need to waste hours with insurance agents, nor do you need an extensive medical exam. Just answer a few questions, and Bestow will set you up with a policy that’s quick, affordable, and provides proper coverage should an unfortunate event occur.
Who does this work best for? People under 54 years old who probably don’t need a financial adviser to get this type of basic protection.
Start Saving Soon After They’re Born
Putting a little cash into a savings account before your child hits five will result in a nice, saved sum down the line.
For example, just a $25 monthly contribution to a savings account when they are two years old will grow to around $5,000 once they are 18.
Want those savings to grow even more? Put them into a high-yield savings account that will use compound interest to your advantage.
Teach Your Child the Value of a Dollar
Its never too early to get your kids acquainted with finance.
Give them an allowance in exchange for chores. Let them spend it on what they want, as long as they know they’ll need to work more to buy more. In doing so, they’ll learn the value of a dollar and appreciate what it takes to make purchases.
Taking your child grocery shopping is another way to teach them about money. Differentiate needs from wants, such as sweets versus meat. Once they see that money doesn’t grow on trees and that it must be allocated properly, they’ll respect it more. This respect can grow into an interest in what it takes to make money.
Let Them Make Money-Related Decisions
As your child grows, get them involved in financial decisions.
Don’t buy them every new electronic device, even if you can afford it. Make them choose, using a budget as some sort of restriction. As they learn the importance of budgeting, they’ll slowly develop financial discipline that they can use for decades into the future.
