5 Tips: Planning For Your Child’s Future
You may have seen these scenarios before: parents investing for children’s future but encountering an unforeseen circumstance like a medical emergency, depleting savings; or family breadwinner finding that saved earnings are insufficient for a kid’s private schooling expenses.
There may come a point when people find their savings running out, sending alarm bells ringing. As if spending years of late nights with young children is not stressful enough, having no contingency fund, much less the best investment plan for child future, can be tormenting.
Parents planning and saving for children’s future can be extra challenging when good money management has been overlooked. In other words, saving for children’s future deserves attention as early as when they are still in the mother’s womb. It can be through a child education plan, a life insurance policy that builds cash value that can be tapped into later on in life.
The key to having something to pass on to your kids is to nip bad spending habits in the bud, and realize the value of child education planning. Here are five pointers to plan for the future:
Tip #1: Adopt a positive attitude. Even couples raising kids, living a paycheck to paycheck lifestyle, and still deciphering the best investment plan for child future can be creative and resourceful enough to find multiple ways to earn extra and make available funds grow. It all begins with a `can-do’ attitude, and utilizing skill sets. Nowadays, it need not even require leaving the comforts of home.
Tip #2: Pay off debts and gain financial freedom. At the end of the day, parents need to come to grips with what is really important – a bright future for the children. To lay a solid foundation for the best investment for child future, parents need to take a close and honest look at their financial health. A thoughtful approach, that includes designating a guardian when they are not around, is ideal.
Generating enough savings through an investment plan for the future is vital. Paying off credit card debts, and learning prudent investing can yield good returns. This, in turn, bolsters one’s ability to secure child future.
Tip #3: Instill self-discipline. The only way to build personal earnings power is to reassess your income, evaluate both your physical and financial condition (current assets, liabilities, and so on), and follow a money management plan. Control random buying sprees. Personal earnings can be a defense against inflation.
Smart parents planning for their kids’ college education may have done the math: calculating how inflation impacts education every passing year, and taking into account that educational costs may possibly double every 12 years. Parents planning and saving also serve as fine example for children to emulate.
Enterprising individuals who are gutsy enough to run their own business, on the other hand, gain the “second-best hedge” against inflation. Running one’s own business requires sufficient capital, so reinvest savings and earnings to make those funds grow, and allocate a chunk in child investment plans.
Tip #4: Invest in legit schemes with a long-term trajectory. A secure future for your child cannot be left to chance or to your lucky stars. Money management experts suggest having a second income, preferably one that will not double your workload. Even if it does at the start, getting into a money-making venture that focuses on something you are passionate about is bound to last longer than a fleeting trend you get wheedled into.
Questions like whether an insurance plan will help, will there be enough savings, and so on, cross many parents’ minds. The earlier you learn about the pros and cons of financial options that work double duty as child investment plans, the earlier you can start building savings. Some of the best savings plan for kids or investment options may require a custodian until the child reaches legal age.
Some people who seriously want to make their money grow and plan for the future invest on stocks; deposit in a savings account; or invest in cryptocurrencies. Among all these, stocks and cryotcurrencies like bitcoins continue to create peak euphoria.
There have been many cases of people heading towards investing blasphemy, and losing money very quickly, though. There are alternatives to traditional investment tools that can aid you in compounding your earnings to a large extent. There are also individuals who turn to underrated investment tools – online. A promising way to invest funds is through an online funding platform. Into this mold falls Blend.ph
Tip #5: Check out non-traditional investment avenues, like a peer-to-peer (P2P) funding platform that matches investors directly with screened loan applicants. When you require some extra funds, or open enough to try a simple and hassle-free investment avenue, an online funding platform can offer much help.
A Two-Pronged Investment
If you can funnel even just a small amount each month into an online investment platform that will generate a return higher than what a traditional bank can yield, you are in effect hitting two birds with one stone. You are growing your savings (and deriving monthly interest, even from a minimal investment), and at the same time helping finance the needs and requirements of a qualified lender. It can be a good deal.
Responsible parents intent to secure the future of children fall into different types. Some may be borrowers – they can use a hefty loan to finance their children’s education, or use small increments of capital they have borrowed to add to their savings for family or contingency purposes. Others can serve as the investors — who can collect an interest rate on the return, while facing limited risk since the P2P funding platform’s algorithms are doing much of the work.
Knowledge is Key
At the end of the day, parents just need to come to grips with what’s really important – a child future plan, among others. Staying liquid, freeing themselves from debt, building savings for future retirement, having funds to finance their own homes, paving the path and having the ability to pay for kids’ college all require careful planning.
Every big move or investment decision comes with risks, so do your homework and cast aside misguided notions or hearsay. Consulting a trusted financial advisor should provide you much of the resources and information you need, leading to the best investment for children’s future.
Learn the ropes of investing money in a lucrative short-term investment vehicle like the Blend.ph P2P funding platform. Child education planning and a trusted investment partner can go hand in hand. They can provide peace of mind to parents, offering reassurance that lifetime savings or hard-earned money are in very capable hands. Indeed, it makes a whole lot of sense to start investing for children’s future now, beginning with having a meticulous savings habit.