Of the many costs we have to foot as parents, we must have a solid foundation to ensure our children are protected. We must be aware of our financial situation, and as the costs of living are increasing due to matters beyond our control, we need to think about the best investments for our children’s future. Let’s show you some things that you can implement.
The Simple Support
We must remember that before we start thinking about investing or dipping into stocks and shares, we need a solid base plate of support first. You need to make sure that your child and the family have the right levels of support for healthcare, dental care, and everything you deem necessary.
Something like dental insurance may seem low on your list of priorities, but with providers like Guardian dental insurance offering a number of policies, it’s important to understand that protecting everybody’s health will be the most important thing as we all get older. They say health is the most important thing, but when we are living on a month-to-month basis we can neglect this for obvious reasons. Think of having insurance, but also learn the best ways to save money and look at lifestyle habits. When we get the fundamentals right, this is a far better way to get ourselves in a good financial situation.
Investing in the Right Ways
Investing can reap dividends, but usually only in the long-term. Many people can easily get suckered in by the benefits of investing in cryptocurrency, but we have to remember that real returns on investment are about putting your money somewhere and leaving it.
There are a lot of benefits to investing in the right stocks and shares or cryptocurrency, but rather than being obsessed with it and checking the markets every day, you’ve got to take the Warren Buffett approach and just put something away and not touch it for years (or preferably decades).
There are other ways you can invest, such as real estate, which can be very lucrative, but you need to understand if you can deal with real estate Investments.
If you want to save for your children’s future and they are young enough now, you know you roughly have a timescale of 15 years, so starting now and having a realistic understanding of the outcomes can provide a financial buffer to get your children started.
A Side Hustle
As many parents may find themselves working full-time jobs, the notion of getting another job on top naturally won’t appeal, but this is why you have to choose a side hustle that you enjoy. You might want to do something that can involve your children, for example, on a Saturday, you could deliver flyers door-to-door and use this as an opportunity to spend time with your children. You may want to do something that actively involves your passion because if you do something you really love, it won’t feel like work!
Using Your Roth IRA
If you are hoping to provide support for your children in a flexible way, a Roth IRA might be a good option for you. People under 50 can save up to the value of $6,000 for retirement after tax has been taken, but any money withdrawn before they turn 59 and a half will get a 10% tax penalty. Think long and hard if this is the best way to put some money away for your children right now.
Children’s Savings Accounts
Many credit unions and banks offer children’s savings accounts that you can run with your child, which can help your child get into the habit of saving money, instead of spending it. This is not just a great way for your children to learn the value of saving, but it’s also a perfect opportunity to help your child become financially independent in the right way.
This is something we can neglect because we may not want to involve our children in money, but you may think that you’ve got to provide every penny, however, one of the best lessons to help our children save for the future is to give them a solid understanding of how to manage money. If our children see us making financial mistakes, this could be an excellent lesson for them.
It is certainly not easy right now, and one of the biggest mistakes many parents make is thinking we need to save lots of money to make up for lost time, but some of these approaches can make a big difference.