Saving for your little darlings’ future can feel like a minefield that every parent has to cross. Of course, you want the best for your kids, and hope that they can achieve bigger and better prospects than you have, but how can you ensure that your budget and income allows this? It can be tough to juggle the costs of managing your household expenses, let alone managing to put away a large portion of your savings into a college or retirement fund. However, don’t worry! Even if you haven’t started saving yet, there is still time on your side. What is important is that you find the right financial plan for you, and your household, and pledge to stick to it religiously!
Now the fun can begin; it’s time for you to sit down and work out just how much you can afford to put away in a savings fund or account each month. You may have heard of schemes including the 529 plan, in which you multiply your child’s age by $2,000 to calculate just how much you should be putting away on a monthly basis. If this amount just isn’t feasible, then you may want to make an appointment to seek financial advice and get a better understanding of what costs you will be expected to cover as part of their education. The joy of kids is that you never know where some costs may appear from. However, having an idea of the overall costs making up their education and college fees should grant you some peace of mind for the time being.
You never know the future, and your kids may be lucky enough to earn a scholarship or bursary to enable them to study at their chosen college. Sites such as school choices, provide a wealth of information about colleges and schools across the US so that your kids can make the right decision for their own interests.
If you don’t want to follow a 529 plan, then there are other options available for you to ensure that you can start to put some money aside. Consider opening a Uniform Gift to Minor account which lets you save up to $14,000 a year, or up to $28,000 between yourself and your partner, without any tax being charged on this amount. You could also consider investing the money in your own taxable current account and ensure that it remains untouched until your loved ones need it, sure, it’s not quite such a sentimental option, but it does mean that you can keep a watch over your savings. It’s important that you do your research and choose which option works best for you and your family.
It can be tough considering how and when is the right time to start investing in your kids’ education. However, remain calm and flexible when discussing which options work best for you. The 529 plan or even making a saving in your own account are just some of the routes that you can explore, to ensure that your children have the future they deserve.