NEW YORK, May 22, 2024 (Newswire.com)
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For parents, planning for their child’s future is about laying the groundwork for success, happiness, and security that will last a lifetime. Here are several ways parents can help provide a stable financial path for their children.
Consider saving for education
College can be a significant expense, but parents can get ahead of it if they start saving early and using the right tools.
“One option is a dedicated education savings plan, like a 529 plan or Coverdell Education Savings Account,” said Rebecca Bast, founder and private wealth advisor for Northwestern Mutual’s Bast Financial Group. “These plans offer tax advantages that can help parents save for college more efficiently.”
Teach financial responsibility
Equipping children with the skills to manage their own finances can help them navigate future financial decisions, big and small. Teaching financial responsibility can include lessons on saving, budgeting, and the value of money. Also, by involving children in financial decisions appropriate for their age, parents can foster financial literacy from a young age.
Explore life insurance options
Parents might also look into life insurance policies that can provide financial security for their children’s future. The right life insurance plan can ensure that children have the necessary support in the event of a parent’s untimely passing.
Consult a financial advisor
With so many things to plan for, parents can benefit from a little help sometimes. Seeking out a financial advisor can mean getting personalized guidance tailored to the family’s unique needs and goals.
Finding a financial advisor can be as simple as typing “financial advisor near me” into the search bar and parsing through options. It may also be a good idea to ask family, friends or coworkers for recommendations.
Encourage independence
As children grow, encouraging them to earn and save their own money can promote independence and a strong work ethic. Whether it’s through allowances, part-time jobs, or entrepreneurial ventures, earning their own money can teach children the value of hard work and financial independence.
Have an estate plan
An estate plan is a comprehensive approach that ensures your wishes for a child’s care and a parent’s assets are honored.
“An estate plan can include a will or trust, guardian designations, and detailed care instructions, and the intention is to safeguard a child’s welfare and provide clear directives for the management of an estate,” said Bast. “Parents can keep these documents up-to-date and aligned with life’s changes by regularly revisiting their estate plan.”
Regularly review plans and goals
As children grow and circumstances change, so too may the strategies needed to best support their future. Parents should periodically reassess their financial plans and goals, adapting to their children’s growth and evolving circumstances. Consistent reviews of financial planning strategies, potentially in consultation with a financial advisor, can help ensure that parents can continue to effectively plan for and support their children’s futures.
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance
Company (NM) and its subsidiaries in Milwaukee, WI.
Source: Northwestern Mutual
Contact: Don Klein, 1-800-323-7033
Source: Northwestern Mutual
Original Story: https://www.newswire.com/news/northwestern-mutual-ways-parents-can-plan-for-their-children-s-future-22338122
