Parents: Is It Too Late?
I frequently hear parents tell me it is too late for them to start working towards their financial dreams for their families. And I say, parents, get a cup and wake up! It is not too late and the sooner you start taking action the sooner your goals can be reached. The fact is, time is most beneficial the sooner you start.
Top 5 Financial Actions For Parents To Start Right Now
1. College Savings Plan. Did you know a four year degree can largely be financed by putting just $75/month away in a 529 Plan from the time of your child’s birth? Eighteen years, later you have the college fund. Most of us can find $75/month, all it takes is an early start to saving money.
2. Planning a special wedding for your baby girl? Why not start a Wedding Savings Fund with $25/month from birth and watch the compound interest accumulate!
3. Planning to leave a legacy for your children? Why not get some Term Life Insurance that not only covers the family in a time of need and/or can be the basis of the generational wealth you plan to pass on?
4. Want to be a good example to your kids? Of course. So right now, exemplify responsibility by Making A Budget and living within your means. Remember, kids learn much more by watching our actions than listening to our words. A budget shows our kids discipline and responsibility.
5. Sounds funny, but one of the best things you can starting doing for your kids right now is Saving For Your Retirement. I don’t mean for the kid’s retirement. I mean for your retirement so that your kids do not have to worry about supporting you in your latter years.
Continuing the coffee metaphor, start these simple actions early, when the children are being born, and let them brew, (compound and accumulate), into sizable accounts that are ready when you need them. Getting started later in life? It is harder but it still makes sense to start these actions. With the price of raising children rising faster than most family incomes, the power of compound interest over time can help overcome the expected future expenses and allow you to realize your family’s future dreams!