Saving tips for your child/children’s future

Friday, November 2, 2018

Written by: Jernae Davis 

1. How can I save for my child/children’s future?
There are many different options that you may choose from depending on your goal. 

2. What options are available to my family?
Weigh your options to see what would be the best fit for your family financially. There are many different options when it comes to deciding an account for your child such as custodian accounts, 529 college plan, life insurance policies with college fund payouts, and Coverdell accounts. 

3. How do you choose the right savings plan for my child?
Research, speak with a financial advisor and write obtainable goals. There are plans that are tax-free until a withdrawal is performed from the account, some savings plans require supporting documentation showing that the withdrawal is being used toward educational expenses, and some plans do not have restrictions. 

4What are some basic savings tips?
Open a minor savings account with a bank/credit union that is not connected to your personal accounts. Set-up automatic payroll deduction to that minor account. DO NOT SIGN UP FOR ATM CARD! 
Example: Every two weeks have $100 deposited into a savings account for 26 pays (bi-weekly). When your child/children 18 years old, you will have $46,800 saved along with interest added to the principal if you start when the child is born. You can increase the savings goal every year when you receive a raise. 

5. What are other great financial tips for parents? 
Life insurance plans are important. Make sure your children are beneficiaries of their parent life insurance plans. Be careful with putting a minor on your life insurance plan unless you want the courts to manage the funds in case of your death. 

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