How to Save for Your Baby's Future
Blankets, gliders and toys galore, the items you need for baby’s arrival seem like a mile long. The good news is that while some items like diapers and wipes are essential, baby can get along just fine without the matching crib and dresser set. What’s more important is planning for the days far ahead. From braces to college, you can give your child a head start in life by saving for their future now. Here are some ways to start bulking up the savings!
Get Insured
Insurance can help to give you some peace of mind in case the unexpected were to occur. Having a life insurance policy on yourself is a certain way to ensure your children are taken care of should something happen. Even if the policy doesn’t get utilized before they leave the house (and we hope it doesn’t!), if it is a permanent policy, it will last until they are adults to help pay for your end-of-life expenses.
Another savings plan option is to take a life insurance policy out on your child. A permanent policy grows in cash value over their lifetime. If they choose to, they are able to deduct the cash value of the policy tax free to use however they wish when they reach adulthood.
Make a Budget
If there was ever a time to stick to a budget, it’s now. If you’re reading this blog, you’ve probably already decided that an important goal is to save for your child’s future. Now take a look at your other goals and calculate what percentage you want to put towards each goal and expense every month. Sticking to this will also set a great example of money management for your child as they grow.
Ask for Contributions
It’s easy to accumulate too many toys and items that your child simply does not need. While the baby is young, for each birthday party or celebration, ask for cash to go towards their financial future instead of a present.
Start a Savings Account
There are many different options for saving for your child’s future. There are some that are solely to be used for a child’s college tuition, like a 529 plan, and there are other basic savings plans. We offer an account called the Galaxies Unlimited Kids Club that rewards kids for making regular deposits of any amount into the account. After baby is born, don’t delay in opening the account – it only takes only $10 to get started.
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