Your children are a gift to you and, what you provide for your young ones while on earth is your gift back to them. Half of the battle is giving your children the necessary tools in financial literacy to earn and spend wisely, while the other half of your parental duty is doing what you can to set your children up for an economically sound life. Here are a few tips to help the next generation achieve financial security.
Invest In Life Insurance
Purchasing life insurance can be an overwhelming thought but a financial decision that will save your kids in the long run. Unfortunately, life is full of unforeseeable circumstances that can leave your loved ones in a sticky financial crisis should you unexpectedly pass away or fall into debt. Life insurance is a foolproof way to make sure your finances are taking care of and a little extra if left for your children on a rainy day, whether your kids may need it now or later on in life.
Accept Money Over Traditional Gifts
For your child’s birthday or during special occasions, tactfully ask for donations or contributions in the form of money that you can save in a children’s investment like a Uniform Transfers to Minors Act or a savings account. If you are not comfortable with flat-out asking for money, include a QR code on birthday invitations to avoid awkward interactions. Save every bit you can for your children’s future because their life depends on it.
Invest In Stocks
Involve your children in your investment process when they are mature enough to understand finance. Invest in a common interest like Nike or Netflix and demonstrate the power of compounding and the benefits of investing to reap rewards over time. You can manage and monitor your stocks together, allowing your children to have tangible evidence of their potential means of financial security.