The world is in the throes of a major evolutionary shift, characterized by accelerating, exponential technological change. Between now and 2030, futurists predict that there will have been as much technological development and progress as there was during the entire 20th century. What that means for parents, is that their children will be facing a very different world by the time they reach adulthood. There are three things you can do to help prepare your kids for the world of the future. The first is the help them develop the qualities of character that will allow them to succeed and thrive in any of life’s circumstances. The second is to teach them the value of money and sound money management skills. And the third is to give them a financial head start. You can achieve the latter by saving your money today for their future tomorrow .
The money you invest in your child’s future can help them pay for a university education, start their own business or get a foot on the property ladder. Currently the cost of higher education is rising rapidly, loans for business start-ups are difficult to obtain and significant down payments are required to secure a mortgage. If these trends continue, any financial help you can give your child will prove invaluable. For many families, freeing up money that they can save and invest is often the greatest challenge, particularly in difficult economic times.
The key to having enough money to save, not only for your children’s future, but for your own retirement and unexpected emergencies is learning how to live below your means. That is often not an easy concept to grasp, in a world where most individuals and even governments live beyond their means. Living below your means doesn’t mean that you have to suffer deprivation. You can lead a very comfortable life; just not a wasteful one. It involves changing your attitudes and spending habits, setting financial goals and following a budget. Try keeping track of every cent your family spends for a two month period and then sit down and take a close look at where the money is going. It’s the first step to finding ways to cut back on your spending and trim your expenses. With a little concerted effort, most families can free up a surprising amount of money that they can invest for the future.
When saving for your child’s future there are a number of considerations that will allow you to maximize your investment. Saving for children is a long term investment and the sooner you start the better. If you start soon after your child is born, the investment will have close to two decades to grow. Set up a regular monthly savings strategy, make it part of your budget and treat it as a necessary expense. Plan to save as much as you can afford each month, however, make sure you understand the tax implications when determining how much to invest annually.
You can take an active role in securing your child’s future by giving them the tools they need to succeed and the financial resources to get them off to a good start.