02 Feb
3 Ways to Insure Your Children’s Financial Future
For a parent, there may be no bigger concern that the wellbeing of your children. And between extra curricular activities and educational expenses, the bills can begin to add up quickly. Here are 3 ways that you can provide a financially secure environment for your children.
- Build a strong financial foundation for yourself - Make sure you have plenty of money put away in an emergency fund, build your net worth, and avoid expensive debt.
- Purchase life insurance for you and your spouse - Avoid whole life insurance and purchase a reasonable term life policy. Your not looking for a windfall, just enough money to provide a level of security and continuity for your family.
- Invest in your children’s education - As early as possible, start saving money in a 529 educational savings account. University tuition is extremely expensive and saving early will help ensure that your children have access to good schools.
Ask the Expert - Money Magazine Your kids don’t need life insurance «
Great article!
BOTH parents should have the appropriate amount of life insurance, even if one parent is not working. Although there may not be loss of income, expenses will greatly increase should something happen to the stay-at-home parent. Both parents should thoroughly discuss this topic, even as morbid as it seems. For instance, would the surviving parent want to only work part-time in order to be home more? What about daycare, babysitting expenses, as well as a housekeeper? These expenses must be factored in, and the stay-at-home parent should be insured for this amount.
February 26th, 2008 at