If a new child has entered your life, you are no doubt full of joy today and hopes for the future. And you can help make that future a brighter one for your child and your family by taking some important financial steps.
You may want to start saving for college right away. Given the consistently rising costs of higher education, the earlier you start your savings and investment plans, the better off you will likely be.
And if you haven’t already purchased life insurance, now is the time to consider it.
You’ll also want to work with your legal advisor to create an estate plan, which might include drafting a will and naming a guardian for your child in case you’re no longer around.
One more suggestion: Don’t ignore your own needs. In particular, keep investing for your own retirement through an IRA, 401(k) and other vehicles. By achieving your own financial independence, you’ll help free your child from possibly having to help support you later in life – and that freedom is one of the best gifts you can give to your children.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.
For a local consultation, contact Sean Danowski, 804-794-3595 (office), 804-396-3542 (mobile), or Sean.Danowski@edwardjones.com
Money Tips for Your Rising College Students:
1. Have your student track spending before going away. Did they spend more on non-essentials than they’d saved? They can then adjust accordingly.
2. Warn them to be wary of credit cards. While they can be a good tool to build credit, it’s vital that they understand the consequences of not paying that balance off each month.
3. Help them with "practice makes perfect." By working within a budget during college, your student will be better positioned to live within their means after graduation.
