Whether you want to provide your child with funds to attend college or a down payment on his first home, saving for your child’s future is a smart and thoughtful gift. However, it’s important to understand your financial options to maximize the benefits of each dollar you tuck away. Effective financial planning is the best way to ensure the savings you set aside today will grow into the funds needed for your child’s future.
Determine Your Goals
The first step in saving for your child’s future should be to lay out your specific goals for the funds you wish to put aside. Because there are many savings solutions available, it’s important to choose a financial vehicle that is tailored to the end result you want. 529 college plans are a great way to invest in your child’s educational future, while trusts or other investment solutions may be better if you want to simply set aside funds to provide your child with greater financial freedom when he is ready to strike out on his own.
Keep Your Own Portfolio in Mind
The more flexible you are in terms of finances, the more you can plan to put away for your children. When planning to save for your child’s future, it is thus also important to ensure your own investments are growing desirably. Discussing both your own assets and the financial goals you have in mind for your children with your financial planner is the best way to maximize the benefits you gain from every dollar you earn and invest.
At Financial Directions, LLC, we can help you choose the right savings vehicle for your child’s future. Our financial planners also specialize in retirement planning, portfolio analysis, and insurance evaluations to assist you with any of your financial needs. Please visit us online to find out more about our financial services in Tucson, or call (520) 408-7777 to schedule a consultation.
