Of course, you want a healthy relationship with finances and caring for your family; and, if you have a child, you need to plan in advance to have the same for them. If your household meet the requirement of a low income family, you can always approach Comcare as they open arms and provide financial assistance. Otherwise, as for those who are overly qualified yet in need of money, perhaps a money lender Singapore is another resource you can explore. But there are other aspects you should take into account as well. So, what do you have to look at and how do you start saving for your child now? Let’s look at a few figures below.
The cost of raising a child alone can run from $79K to nearly $200K alone; so, for parents who want to ensure a sound financial future for their kids, what can you do?
Taking care of their financial future means you have to take care of your’s now! You have to spend accordingly and save accordingly. Build up streams of passive income, so you are always earning, even when you aren’t working. Clear out financial obligations and debts so you don’t have lingering payments to make. Have health insurance so you aren’t stuck with huge medical bills. You have to take care of yourself now, so you can start to save for their future as well.
When we don’t account for our financial future, we can’t save for them. If you simply spend and don’t allocate money for savings, you will never get ahead. So, as a parent, plan. Make sure you go through assets, expenses, costs, bills, etc. Doing this is essential if you wish to get ahead, get out of debt, and have the ability to begin to save for your child as well.
You have to plan; many countries have unemployed rates in staggering figures. With unemployment rates close to 50% in some nations, it is truly scary wondering how you will care for your child. Cost of living will rise, unemployment is going to occur, so what can you do to help your child and their future?
Let’s look at two examples. Person A gives their parents $1K a year for expenses; Person B doesn’t have to, as their parents have passive income to stay afloat while caring for their child. At 15 years, A has no money set aside, while B has nearly $280K saved. At the end of 35-years, person B has nearly $1 million set aside in savings.
Let’s take a step back. What should parents consider now in order to help their children and the uncertain future going ahead?
– Every adult has to take care of themselves and financial future. It is important to pay bills and expenses, and know you are cared for in the present.
– As a parent, you also have the responsibility of taking care of your child, so you have to account for this aspect.
– If after retirement we have expenses, we should be responsible for them. Children should be responsible of their expenses at this point as well,
– If, after retirement we have financial expenses, our children are going to be responsible for these expenses.
– So, taking care of our financial future now, means our children are not going to have to worry about this going forward.
In this simple example, we can see how as parents, by simply taking care of our financial future now, when we are earning and making a living, we are not going to have to pass the cost or burden down to our children. They are not going to have to worry about us, in addition to the influx in cost of living, unemployment, and the other uncertainties they are sure to face as they go forward with their lives. We should not linger or leave them with the burden of having to care for us.
Every individual is in control of their money and finances at the end of the day; if you wish to spend $200K for your child to get an overseas education then go ahead and do so. But, you have to account for the other costs of living. You have to know what this is going to mean for you and your financial future going forward. How you are going to be able to pay your bills and any other expenses which might come your way going forward into the future should be your responsibility.
But, as a parent, you should have the desire to provide the very best for your child. And, this means now as well as in the future. You don’t want to have to worry about leaving them with unpaid expenses or additional costs as they arise when you get older and are no longer able to work or pay your own bills. You do not want to put their education their life, or their family going forward in peril. In taking care of your own financial future now, not only are you going to take care of your child now, but you are also going to take care of them in the future. You are not going to leave them with lingering bills which they are going to have to pay for, simply because you did not take care of what you had to take care of when you were working.
It is your children who are ultimately going to suffer if you do not take care of your current expenses. If you are not frugal, if you do not find ways to pay your bills, and if you are constantly borrowing money without paying it back, you are eventually going to leave your children with this burden. So, what should you do now as a parent? Should you simply stop borrowing and spending? The answer to the question is no. But, you do have to be careful where you are spending and you should be more contemplative prior to simply buying and spending foolishly.
Make sure you take care of your financial future today as a parent, so you do not leave this burden with your child. If you are responsible, pay attention to spending, and know how to save, this is going to bode well for them and their potential to save in their future adult-life.