Although most people these days have children, few of them actually plan it. Children are an expensive investment, and yes, they are an investment. To raise a child until they are an adult, it costs a well over a 200k. This is of course abstaining from the extra costs of camps, sports, music lessons, and potential medical bills. According to the Department of Agriculture, these costs are even more expensive in urban areas, where household income can be slimmer than those in rural communities. Navigating the financial minefield associated with having a child can be stressful, but there are ways to go about it.
A 529 College Savings account is just one of many ways to begin saving for your child’s potential college expenses. Although college might seem like it’s very far in the future, the costs of sending your child to school can take years to accumulate. Sponsored by states, these 529 accounts give parents the freedom to grow their savings tax-free, by investing their after-tax money.
Another way to save for your children’s future is to ask relatives and friends to abstain from buying your children frivolous items such as toys when they are younger. Although these types of gifts will earn them free hugs, it does nothing for the long-term benefit of the child. Instead, ask if they can place the money that would be spent on material items, onto a check that will go into specified savings accounts. This money will grow exponentially as the child gets older, and has more occasions in which gifts are expected. When one sits down and really thinks about how many birthdays, holidays, and graduations their child will encounter during eighteen years, it is easy to see how that money could be invested and grown to aid their future.
Children are a venture that will never lose their value. It is important to start the savings process early to maximize the potential benefits. Some of the most expensive items that will be required when raising a child will come when they are babies and toddlers. Check out these Groupon Coupons for Buy Buy Baby, and begin the savings early on in the child rearing process! Investing in the future starts with investing in your own child’s future!