Hopefully, the first time that little bundle of joy is placed into your arms you won’t be wondering how in the world you are going to pay for this child! However, as reality sets in, your thoughts will probably turn to braces, music lessons, sports camps, college tuition, and a wedding. While these thoughts can easily lead to panic, plan ahead instead. If you begin now to set money aside for these expenses, you can be ready to enjoy each milestone with your child.
Give Them Options
One of the best gifts you can give your kids is the foresight to save money on their behalf from the time they are just a tiny bundle in your arms. This one act opens up a world of possibilities for your kids. With a solid savings account, your child will have the freedom to follow their dreams, whether that is a four-year university degree, trade school, or opening a micro-business of their own one day.
Plan for Major Expenses
Every child comes complete with a substantial set of major expenses! For example, nearly every child will need braces. This will cost you several thousand dollars, even with dental insurance. As they get older, they will likely be involved in extracurricular activities. That spells money! It is also likely that your child will want to attend college, which is notoriously expensive. Finally, you will likely want to help with a wedding one day. Weddings can cost tens of thousands of dollars, although there are ways to save. For example, off-season weddings are more affordable than at the peak.
Help Them When They Need It
It is customary for parents to dream of giving their children a substantial inheritance when they pass on. While that is a noble endeavor, your children will likely be well established by the time you die. On the other hand, the needs always seem to surpass the incoming money during an individual’s twenties and even thirties. This is the time when your kids will be getting married, earning college degrees, and having children of their own. Financial help now will mean far more than thirty or forty years from now when you pass away.
If you start now, you will be amazed at how much money you can set aside for your kids. Regular contributions really add up. Best of all, it will give you peace of mind to know that your kids will have all of life’s best opportunities available to them.
Check out this article on why you need a family budget now more than ever!