One of our main goals as mums is to secure our little ones’ futures and to make them financially-stable and capable to live independently and raise their own families when it is their time. It might be easier for those who are earning a lot to save up and set aside a substantial amount for their child to inherit or get when they turn 18, it is no easy fit for an ordinary employee just trying to make ends meet from paycheck to paycheck, but it should not stop you from aiming for a more secure and a brighter future for your children.
The good news is we now live in a financially-exciting time where people openly talk about money and how to grow them. The world wide web is also a treasure trove of tips and tricks on how you can make your money grow and, hopefully, save enough for you child’s future.
Here are a few ways on how parents can secure their children’s future:
Open A Savings Account
Cliche as it may sound, putting up a savings account for your child is still the easiest way to go about building that fund for your little one’s future. Setting aside a small amount each payday and doing so regularly will prove to be effective in growing this savings. If you can afford to set aside a bigger amount of money, you might also want to consider opening up a time deposit account that is expected to yield a bigger interest over a longer period of time. Of course, since you cannot just withdraw this amount at will, make sure to set aside an amount you are sure not to spend or use for something in the imminent future.
Invest In Mutual Funds
As any financial expert would advise, it is best practice to not put your eggs in one basket. As you aim to grow your money, you might as well consider investing in mutual funds. This type of investment is especially suited for those who have limited knowledge about the stocks market as mutual funds professionally managed. It is also a low-risk investment, ideal for those who are just testing the waters and looking for the best ways to grow their money and invest for their future.
Update Your Social Security Contributions and Loans
Social security is but another way for parents to secure not only their retirement but also their children’s future. With an updated social security profile, you are guaranteed to receive a certain amount as monthly pension during retirement years, allowing you to be financially independent and not relying on your child to shoulder your hospital bills or your daily expenses. You will also receive benefits in case of injuries or accidents, thereby allowing you to still provide for your children’s needs while you are recuperating or indisposed. You may want to visit www.summitdisabilitylawgroup.com, if you need help in claiming disability benefits.
Get A Life Insurance
It is also a wise decision for any parent to get a life insurance. With government-enacted laws placing tax burdens on recipients of properties and other parts of an estate during death, a life insurance is a more efficient and less stressful way to prepare and secure children in time of a parent’s death. Some companies also offer combined products, i.e. life insurance and mutual funds, that it is best to research on the most practical life insurance to invest on.
Raise A Money-Wise Child
Nothing can prepare your child best for the future than educating him as early as possible about the value of money and the power of saving up. You may be overly rich and can afford to leave him a huge sum of money for his future but if he will mismanage this fund, your money can only go too far. Financial literacy is something that is not taught in school that mums ought to take it upon themselves to raise children who are financial literate and know full well the value of their hard-earned money. You may check out our 4 Mummy Money Tips article for a few ways on how you can raise your child to be money-wise.
Try as we might, we can only do so much in securing our children’s future. The future, after all, is never promised, but nothing beats preparedness and parsimony to prepare them for whatever waits for them in the future. It is also important to teach them the value of hard work, sacrifice, passion, and self-fulfillment.
:camera: first image via Pixabay
3 Comments
Great tips! I’m lucky my parents were in the financial industry and did everything here. I intend to do the same for my children in the future too! Nothing beats preparing them financially while they’re still young. 🙂
You’re, indeed, lucky! I intend to follow these tips, too, so my little man will be financially-prepared no matter what life throws at him in the future.
Wow, honestly I haven’t think about all these yet, maybe because I’m still single and have less responsibility, but will surely get to find ways to prepare for my future. Reading this has reminded to really think about the future while I’m still capable of earning money. Thank you so much for sharing this cause I really find it a great help.