How Parents Can Finance Their Kids Future
Pixabay CC0 License, 2017
Surviving the real world is not easy. It is the concern of every parent whose children are already in their teens.
If you are one of these parents, one of the best things that you can do is to give your children an excellent financial kick start.
This will help your children streamline their lives and get on track.
But how do you save enough money to get them going? Well, fortunately, there are several ways of doing that.
To keep everything simple, we have listed two of the best ways you can save a reasonable sum of money to finance your children when the time comes.
Uni Savings Account
One of the best and simplest ways to help your children financially is to start saving early. You don’t have to keep the money with you.
Instead, open a university savings account!
A university education is an essential part of your children’s lives, but the overly massive tuition fees impede big time!
A lot of children tend to miss out on university education not because they want to, but because they don’t have the money to pay for it, neither do they want to fall into debt by taking interest-based student loans.
Furthermore, research by the Economic Policy Institute
found out that people who have a four-year college degree tend to make twice the wage that others without a degree make in an hour.
In other words, by opening a college savings account, you are ensuring a kind fate for your children. This is a financing alternative that will benefit them their entire life.
If you’re saving money to finance your kids when they go out in the world, make sure you consider brokerage accounts
This not only offers you great flexibility, but you also get to enjoy significant returns in the more extended run.
The best part is that you don’t have to dive into any hassles.
The monthly amount can automatically be deducted from your monthly salary.
This kind of investment can grow a lot over time.
So, when it is time to let your kids out in the real world, you have a reasonable sum of money saved up for them.
They will be able to use it for anything whether it is tuition, wedding, or even the living expenses.
Further down the line are parent to child loans
, a service initiative of LaTrobe Financial which is aimed at assisting generation rent.
The scheme is designed to assist both young adults and their parents in home purchases.
Teach Financial Responsibility
If you want your children to live a satisfied and content life, it is essential that you teach them the etiquettes of dealing with their finances.
For starters, be open to them about money matters.
This doesn’t mean that you should tell them all about the financial discrepancies. Just let them know a few good and bad experiences and what you learned from them.
Moreover, teach them financial management.
You can give them their pocket money and guide them how they should manage the month.
Driving such actions allows you to instill the thought that financial management is important.
To conclude it all, make plans on how you will be financing your children in the future, and teach them the etiquettes of using those finances.
This will lead them to a prosperous, financially sound future.
General Advice (Tax) Warning (Australia)
This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement.
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236874 - 2023-07-18 00:48:33