When to Plan for your Child’s Financial Future?

There is this ‘Someday’ concept that we keep applying for almost all long term financial goals. “Someday I will buy a house of my own”, “Someday I will go for a world tour”, and when it comes to saving money for this “Someday” we never ever start it unless there is some pushing need.  And one fine day, after it gets too late for saving, you just while away the rest of the time complaining about how you wasted your time or how you never got a chance to save money for your desire. Financial planning experts say, “Your money saving goal starts only when you actually start putting your efforts towards it. You just can’t expect things to happen just because you want it to happen- you will need to give your hard work.”

This concept is so very true and sensible. Hence, if you really hope to plan for your child’s strong and wealthy financial future, it’s time to get it rolling. Are you not yet a parent? You can still look out for opportunities to open funds to help welcome your unborn child with financial security. How is it to enjoy parenthood while staying financially secure? You need to live it to know how exciting it actually feels. In this post we will look at some of the life events that signal for securing your child’s future with some savings plan.

Schooling is Costly: In today’s situation, schools and educational institutions have become too costly that many of us have to save to spend. Even if your child goes to a Public School, you will have to support them with study materials, coaching classes, extra-curricular activity camps to enhance their skill sets.  Remember that any private school in an average can cost $9,000 a year just for tuition fees.

Temporary Loss of Job: This one is for you… what if you meet with an accident or some sudden loss that leads you to go without a job for a few months? Do you have that amount of money to support your children’s requirements? You must have at least six months’ salary as saving to cover such temporary unexpected situations. If you don’t plan for it, you can’t come out of the debt burden that you’ve invited upon yourself at least for several months.

Loss of a Dear One: What if a child loose one of its parent? It’s terrible to think that way but it may happen to anyone. One parent can’t handle the whole pressure all alone and it will have severe impact in a child’s future. Economically and emotionally, a child will need proper care and attention in this situation. Isn’t it always better to plan for the worst?

Wedding Bells: We know that’s really far away but it is surely your responsibility to help your child for their big day. Wedding have turned out to be so costly an affair that couple themselves work to save for their wedding. But, you will definitely make your child feel proud if you can support them with what you have saved for their wedding.

Child with Special Needs: Raising a child with special needs means a lot of expenses and financial challenges apart from the regular burden factors. If a child requires on going treatment or special care, you better start planning for their future. You may even think about a trust as a good option to help your child grow financially independent. Who knows? Your child may even use your funds to start a business for their own. Help boost your child’s self-confidence and this is the best possible thing you could ever do to secure their wellbeing.

The bottom line for pulling out all these scenarios is to let you know the importance of starting to saving and planning for your child’s financial future now.

 

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