Planning for Your Child’s Future: Best Practices

Children who grow up to be high achievers typically have one thing in common: their parents started planning for their future early on. If you want your child to have the best possible chance at success, it’s never too early to start thinking about their future and what you can do to help them get there.

Below are some tips to get you started on the path to securing your child’s future:

Start saving for college as early as possible

The earlier you start saving for college, the less of a burden it will be when the time comes. According to statistics, only 78 percent of parents have committed to their child’s education. That means 22 percent of parents are not planning on helping their child with college costs.

But you don’t have to spend tons of money each month to make a difference. Just $25 a month, starting when your child is born, can add up to nearly $10,000 by the time they turn 18. Plus, there are several ways to start saving for college, including the following:

529 Plans

A 529 plan is a savings plan designed to encourage saving for future education expenses. Contributions made to the 529 grow tax-deferred and can be used tax-free for qualified education expenses, such as tuition and fees, books and supplies, and room and board.

Coverdell ESA

A Coverdell Education Savings Account (ESA) is another tax-advantaged savings account that can cover costs associated with primary and secondary education and higher education.

UGMA/UTMA Accounts

A Uniform Gifts to Minors Act/Uniform Transfers to Minors Act account (UGMA/UTMA) is a custodial account that families can use to save and invest money on behalf of a minor child. The account is in the child’s name, but a parent or guardian controls the account until the child reaches the age of majority, typically 18 or 21 depending on the state.

Have a roof over your head

One of the best investments you can make is in a home. Not only does owning a home provide you with a place to live, but it can also be a source of income if you ever decide to rent or sell it.

According to recent data, the median home price in the U.S. is just around $200,000. If you were to put 20 percent down on a home at that price, your monthly payment would be approximately $950. And while that may seem like a lot of money, keep in mind that some companies offer affordable mortgage loans that can make homeownership more attainable.

Besides, providing your children with a stable home environment is one of the best gifts you can give them. Studies have shown that children who grow up in stable homes are likelier to do well in school and less likely to experience behavioral problems.

So, if you’re considering buying a home, now may be the time to start looking. Just be sure to work with a qualified mortgage lender to get the best possible deal.

Invest in your health

Of course, being able to provide everything your family needs requires that you be in good health. That’s why it’s so important to invest in your health now so that you can be available for your family later on.

You can do several things to improve your health, including eating a healthy diet, exercising regularly, and getting regular check-ups. It would help if you could also have health insurance to get coverage in case of an unexpected illness or injury.

While it may seem like a lot of work to invest in your health now, it will be well worth it in the long run. After all, what’s more important than your family’s health and well-being? So, start making your health a priority today, and you’ll be able to provide for your family tomorrow.

Provide learnings and opportunities

In addition to financial support, you can also provide your children with learning experiences and opportunities to help them succeed in life. For instance, you can read to them every night, take them to the library, or enroll them in extracurricular activities.

You can also introduce them to different concepts and ideas by talking about current events or taking them on field trips. The more you expose them to, the more likely they find something they’re passionate about.

And, as they age, you can help them explore their options for further education and career paths. Doing so will set them up for success both now and in the future.

As a parent, you are responsible for providing for your children financially and emotionally. And while it may seem like a daunting task, it’s important to remember that you don’t have to do it alone. There are plenty of resources available to help you get started.

Investing in your child’s future doesn’t have to be complicated or expensive. Following the tips above, you can give your child the best possible chance for a bright and prosperous future. So what are you waiting for? Start planning today!