Saving for Your Child’s Future: Strategies for College and Beyond

Saving for Your Child’s Future: Strategies for College and Beyond

Our parents teach us various things from a young age, then we learn more later in kindergarten, then in elementary school, and later in high school. However, not many pay attention to teaching and learning about finance. Many experts believe that a major disadvantage is that primary school education does not offer any training and lessons on saving, investing, and earning capital. 

Usually, children learn this segment from their parents, or children follow their parents habits and absorb them later. However, some parents have found the best way to train their children to become financially independent adults is through a kids credit card.

• Something about money

There are two basic things that children need to know as a foundation, where the money comes from and how money is made. Some children live in the belief that there is money in heaps and abundance, which in reality is not the case. You must clearly explain to children that money is earned through hard and dedicated work, and that money must be respected.

• Needs vs wants

Every child has different wishes, however, parents have needs that they need to fulfill for their family. Therefore, it is crucial that children know how to distinguish between needs and wants. Their parents can sometimes fulfill their wishes, however, the needs include all the expenses that a family has monthly. Most of the money must be used to pay all bills, rent, daycare, groceries, rent, loans, and other expenses that unexpectedly arise during the month.

• Having a credit card

This innovative model is designed exclusively to teach children all aspects of finance while developing the skills to fulfill their duties. Possibilities when we look at the financial spectrum, children can invest money in various stocks, buy, earn, donate, and save. In addition to all this, there are special activity tables that are adaptable to whatever age the child is. 

They were designed to assign duties to children in household chores, and tasks in extracurricular and teaching activities. If the children fill in the table and solve each duty in the given time, they will subsequently receive a certain amount of money. When children become aware that the more they work, the more money they will earn, they will become real little worker bees. The possibility of drawing up a savings plan is also a type of advantage where you can set aside money for education, training, or your first property. Investment refers to the possibility of investing in shares of specific companies that are within the offer.

• Let them start working

For many teenagers, the allowance that their parents give them is not usually enough, so they have to find a part-time job to cover their expenses. Here you have to encourage children to choose a job they like and want to do. Smaller kids can sell lemonade, and make items and art to sell while older kids and teens have a lot more options. Teenagers can work in a cafe, shop, sell ice cream, babysit, mow the grass, or take care of the garden. But thanks to the BusyPay innovation, for example, money can be paid directly into their account with the appropriate QR code. Children will be able to cover their basic obligations and save a lot of money by doing some part-time work.

• 529 Educational plan

This plan is designed to help future students pay their tuition. Many students choose to save money this way for education. There are two options, one is that you can save money in advance, and pay tuition at today’s price, which is a bit risky considering that prices go up every year. And the second option is money you have you can invest in the intended stocks, and bonds that are approved by the government or the college. This plan covers all expenses when it comes to education, from tuition, rent, purchase of books, and other necessities for college.

• Encourage them to invest

You must teach children to invest part of their money because it is a form of investment for their future. Besides, it becomes a lot of fun for children when they can track the trajectory of their shares on the phone. If children buy a share, they can monitor whether it is growing, falling, or stagnating, which is a great thing. 

To begin with, they can choose an industry they are familiar with for investment, but later they have to invest in several of them. There is a reason, and that is to insure yourself in such a way as to protect part of your assets if some shares accidentally fall in value. Only by investing can children slowly lay the foundations, see the bigger picture and start building their wealth.

Guest Article.