At the end of each year I like to assess all of our financial accounts, and create goals for the upcoming year. One of our goals always has to do with the boys accounts. When we had our older son, we decided to set up an account specifically for him. It can be used for school, car, activities, etc. When we had our second son, we immediately set up the same type of account. My parents did this for our family when we were kids and I am so appreciative and grateful for it.
I wanted to share three things to keep in mind or consider if you are wanting to set up some type of savings for your own children. You can also check out more financial posts here.
1.Decide Type Of Account
There are so many options, it can truly be overwhelming. What works best for one family, may not work for another. Talk to your spouse, and if possible a financial advisor to see which option would be most beneficial for your family. This is personalized depending on what you want to use the account for.
2.Know Long Term Goal
Have an idea or understanding what the account is intended for long term. Are you saving for tuition or a wedding? Do you want to use it for daily activities or experiences? Your goals will impact and influence the type of account you set up as well as how much you contribute.
3.Make A Plan
Just like with anything else, plan how and when you want to contribute to the account. Will you set up automatic withdrawals monthly or yearly? Do you plan to contribute when there is extra room in finances? Having a plan will help with consistency and reaching your set goals.
Do you have accounts designated for your children? I would love to know!
As always, sending light and love.