Bringing a child into the world is one of the most exciting and emotional experiences a couple can go through. Along with the task of raising and disciplining a child comes the responsibility of saving for his/her future. Life comes full of surprises, and it’s important that you be able to finance them when those times come. These are three different things you should seriously consider saving for once your child is born.
It might seem obvious, but it is imperative to begin a fund that will be used to help put your child through college. As you probably already know, tuition is not cheap by any means, and as times goes on, it seems to creep higher and higher. By the time your child reaches college age, you will have wished you started a fund to help pay their way through school so that they can move onto a more enriching future.
Start a savings account with interest for your child that is strictly purposed for college. Even if you can only supply a little here and there, you will definitely see an impact once many years have passed.
Braces are also something to think about. Not many people take into consideration the possibility that their children might need braces once they reach their teenage years. If braces become inevitable down the line, be sure to go with an affordable orthodontics clinic such as Dunn Orthodontics. It will help immensely in terms of affording and being able to take the cost of braces for your child head on.
Roth IRA for Your Children
Lastly, don’t underestimate the importance of beginning a savings account for your child’s retirement. One of the most flexible solutions that parents choose for their children are roth IRA accounts. You can easily set an account up under your name with a special designation for your child. As time goes on, the roth IRA will accumulate interest, and there isn’t much that will have to be done on your part to keep it growing.
Once your child is of age to take over the account on their own (working age), he/she can manage the account on their own.
Overall, it’s a good idea to set money aside in general for life’s unexpected bumps and turns. Hospital bills and other sudden expenses can make their way into your life without much warning, and it’s best if you are prepared for it.