INSURANCE AGENCY NETWORK Blog
It is not easy to talk about finances as it is a sensitive and tough issue for many. However, when parents keep running away from this topic, they are actually putting their child's financial future at risk. If you care for your child, you should know that handling money and talking about it is crucial to your child's success.
Here are five things you can do that will help protect and prepare your child financially:
Secure life insurance for yourself.
Perhaps, the most guaranteed way to protect your child financially is to get a life insurance policy not just for you but also for your spouse. In case something bad happens to you, your spouse may not be able to cope with the changes. Your kids will not be able to work for themselves that soon either.
Thus, a life insurance policy will provide for your child's financial support by covering not just his immediate expenses but also his needs for the long term. It may be a bit morbid to think about preparing for your death but keep in mind that life insurance has many other benefits for the living policyholder.
Get a College Savings Account for Your Child
If you are not saving up yet for your child's college tuition fees even at this point, he will be at a serious disadvantage when compared with other students. Don't leave your son working so hard for more than 15 hours a week someday if he has nothing to back up his education. If you do not prepare for your son's college now, not you but he will suffer hard.
Make Your Child Open a Savings Account
Aside from your child's college savings account, you should make your child handle another savings account that he will manage on his own when he turns 18. While he is still a kid, put a bit of money into it while instilling in him the value of being thrifty. If he develops the habit of saving early, you will be confident that at least your son will be more likely to grow up independent.
Specify a guardian in your will.
If you name a guardian, then your will be able to protect your child in case you meet an untoward incident. A trustworthy caretaker will raise your child in your absence although you may assign a different financial guardian. Think about it seriously while your child is still young. Your choice of a guardian may seriously impact your child's financial future someday.
Be open to your child about money and finances.
The best way for you to get your child to handle money responsibly is to make him familiar with it. Talk to your son when you pay a bill. Explain to your daughter what a credit card is. Wait until your child is older and tell him honestly how important wise spending is.
If you take early steps to secure your child financially, you will reduce a huge burden off your shoulders and your mind as well. If you truly love your child, plan for his college and plan how to cope up with the worst scenario. Finances are difficult to talk about but it can make a big difference in your child's life.
At Insurance Services of the West, LLC, 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) 681-0996 or Click Here to request a free quote.