Insurance Services of Washington Blog
Whether you have kids now or are considering having them in the near future, you should know that at some point they will be involved in your finances or that they will have their own financial obligations sooner or later. It is therefore your duty as a parent to educate your children about how to handle their finances. Whatever you teach them about money as kids, they will definitely carry it with them until they are adults.
Here are five tips that you can do in order to ensure your child's financial future:
Get Them a College Savings Account
This is indeed one of the most important things you can do to secure your children's future. Getting each of them a college savings account will guarantee that they will get into college in the future even if you experience dwindling finances. A college degree is still important later in life since those with four-year-college degrees enjoy twice as much hourly wages than those who did not finish college.
Get Your Children to Start Saving
It is best to open a savings account for each child. Ask your bank to help you set up a custodial bank account for your child. You should also explain to your children why they are opening a savings account or why they are doing so separately. Explain the importance of individual financial responsibility and you will have kids that will grow up to be financially responsible.
Although many experts believe that you should save 20% of your income, it's up to you what kind of rule you should impose on your kids. As you give them allowance, you should tell them the purpose of money. You should instil in them the value of saving as early as possible. Discuss how important money is and how they should make them last.
Be Open on the Topic of Finances
Do not hesitate to talk to your kids about finances. Although money is a taboo subject is many families, don't do the same in your own family. Balance your talk on money and non-money matters. Get your children to be comfortable in talking about the importance of money in their lives and in the lives of other people and they will learn to respect and appreciate it.
Get Them Involved in Some Financial Decisions
Although they may not be old enough to help you with your mortgage, do your best to help get your kids involved in basic financial matters at home. This should involve things like preparing a grocery list and discussing the cost of food and the importance of budgeting. You should also get them to help you choose goods as you visit the grocery store and explain why they have to choose this or that.
You can also teach them how much your gas costs and how much your car consumes as you drive. Teach your children early that many fun things in life cost money. Teach them too that saving up is the only way to achieve these things.
Get Life Insurance
It is not healthy to think of a life insurance policy as something that is useful only to your children if you die. Look at it as something that will ensure that your child will not have any problem being taken care of in the future whatever happens to you. Get yourself a certified financial planner or a trustworthy insurance agent in case you need to make a decision about this.
Some Final Words
If you truly love your children, you won't make them dependent on you forever. If you want them to live good and happy lives someday, the first thing that you should teach them is how to handle money. You should know by now how important it is to teach them the value of money and how much peace of mind a life insurance policy would give you.
At Insurance Services of Washington, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. To learn more about how we can help you, please contact our agency at (425) 868-1123 or Click Here to request a free quote.