Being a parent is a combination of responsibility and unconditional love towards your offspring. You spontaneously want to fill your little ones’ lives with all the fortunes in the world. But raising children is not always a walk in the park, and can be a financial challenge.
Life is unpredictable. Thus, you must actively make plans for the future financial security of your child. A secure financial future is the only way to fill your kid’s life with colours of joy.
Read on to find out how to create a secure financial future for your child and provide them with a lifetime of financial security.
Six tips for creating a secure financial future for your child
To lead your child’s life towards financial security, you can actively work to take steps, or passively wait and see what happens, but parents have many options to take control of the situation. It’s also important to improve your own financial freedom to secure your child’s future.
Purchase life insurance
You have both the options of getting life insurance for yourself and Insurance For Children.
As for life insurance, you can choose between permanent life insurance and term life insurance policies depending upon your needs and convenience. In case any peril comes over you, your life insurance will take care of the financial security of your child.
When it comes to your child, there are several insurance plans for children that offer security regarding their education or medical expenses. Child Plan ™ Participating Whole Life Insurance is one such plan that can help your children pay for various expenses with an annual dividend, which happens to be tax-free.
How can a Whole Life Insurance help you secure your child’s future?
Any parent would want their children to receive an assured sum for the rest of their lives. Child Plan ™ Participating Whole Life Insurance is one such policy that not only assures a guaranteed dividend each year, but the dividend your child earns also remains tax-free. However, you’ll have to ensure timely payment for it to happen.
It is also pertinent to mention that the Child Plan ™ is a whole life insurance plan, making it an ideal choice for any parent who wants to secure their children’s financial future.
The best thing about Child Plan ™ is that you can open it as early as your kid turns 14 days old. Besides, there is no contribution limit for Child Plan, and you can contribute for as long as you want, i.e., there are no age restrictions on contribution.
And when it comes to transferring the ownership of a Child Plan ™ , you can do it anytime after your child turns 18. Your child can use the fund to pay education fees, make the downpayment for their first house, start a new business, or use it for any financial needs.
Here are a few highlights of Child Plan ™:
- The child plan is a permanent whole life insurance plan
- You can open a Child Plan ™ as early as 14 days after your child’s birth
- You have the option to transfer the plan in your child’s name anytime after they’ve turned 18
- You can pay fee for any course, or post-secondary education fees, even for those not included in the restrictive RESP designated list
- You can control the use of the Child Plan ™ even after it’s transferred to your child
- Child Plan ™ doesn’t require deposits after 20 years as it becomes permanently funded after that
- Parents, grandparents, or legal guardians can open a Child Plan ™
Your child’s financial literacy
To obtain a secure financial future, your child must know the basics of day-to-day financial behaviour. If your children learn the fundamentals of smart savings and intelligent spending in the right way at a young age, it will lead them to further maturity in financial matters as they grow up.
- You can start by giving your child a piggy bank.
- Introducing them to stock-market games can also come in handy.
- You can also introduce them to investing in mutual funds once they reach the right age and have the proper knowledge to learn how money grows through regular investment.
- Don’t hesitate to include your children in the discussions regarding family money matters when they reach a certain age.
As a parent and as the first-ever financial guide for your children, your role is to instill a healthy idea in their minds about the value of money, its impact on our lives, and the risks it involves. Teach them gradually how to make sound financial decisions.
Paving the way to financial freedom
While you are overwhelmed by debts, raising children becomes a daunting affair. In such a case, your children’s financial security is at stake.
As a measure, you can consolidate your debts to a mortgage. It allows you a one-time payment to all your debts taken collectively. It will make it easier for you to pay debts faster and lead you to obtain financial freedom. In this way, your credit score will also improve.
It all will empower you to create a better and financially secure future for your kids.
Open a savings account
Start by opening a savings account when your child is young. Waiting until your child comes up to an appropriate age will reduce the potential savings amount. If you start right from your child’s birth, you can save a good deal of money that you can use for your child’s education or other necessary expenses.
As your child is too young to open or maintain a savings account, you can open the account in your name and can later transfer it in your child’s name when they come of age.
Setting up a will
A will is not something many people think about, especially when it comes to young people. But, considering the unpredictability of life, setting up a will might be a great option to secure your child’s financial future.
Through a will, you can give your child’s custody to someone trustworthy in case of an unfortunate event. However, legal support could be necessary in this case.
Future Financial Success
Every child deserves to have unconditional happiness and success. But your decisions and plans are the sole factors that will eventually determine a secure financial future for your children.
With many options available, the best way to ensure financial security and tax-free income for your kid is to open a whole life insurance plan like Child Plan ™. With its inherent benefits and great features, Child Plan ™ Participating Whole Life Insurance will prove to be all you need to rest comfortably when it comes to your child’s future.