Anyone who’s met me has probably heard me talk about financial soundness, long-term investments and planning for the future because of my day job. But these same concepts keep coming to mind when I think about my young son and wanting to provide for him and his future. It might sound a little scary, but this is what I’m personally working toward for my own son’s future.
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Let your kids pay for their OWN (higher) education
Becoming financially independent doesn't just magically happen, so kickstart this for him. Provide your support, but entrust your son with the responsibility of managing his first major financial obligation on his own.
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Equip your kids with an awesome financial life-skills toolbox
Impart your daughter with the knowledge and resources she'll need to take on the world with confidence. Ensure she understands and participates in building her credit, healthy spending habits, savings accounts, etc., NOW.
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Change how you think about higher education
It’s great if your daughter decides to go to college, but it shouldn’t be her only option. She might excel more at a trade/vocational school or decide to get a two-year associate's degree (options that may still qualify for that 529 plan). Or she might take a different path altogether.
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Invest in houses
Consider buying a home with a 15-year mortgage as a rental property by the time your kid is 3. When your son turns 18, you’ll own the home outright and can use sale proceeds to invest in his future or give it to him as an investment property.
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Invest in YOUR household
Our children's future stability and happiness aren’t entirely a result of their finances. Furnish your home with love, support, open communication, healthy habits, and laughter. Prioritize relationships with each member of your household, including yourself.
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Have an exit strategy
We don’t like to talk about it, but everyone is going to die. You may not be able to shield your children from emotional pain, but the best way to protect them financially is to set up your will and trust and have a life insurance policy in place.
