No matter how many kids you have, your financial future should be considered. As a mom of five children, I am constantly budgeting bills as well as thinking about the future. There are certain investments and savings needs that every family has, whether you have one child or five like me. Below are a few investment options to consider and how they can affect your family, in the positive as well as the negative.
Your child’s education is very important. To further their education after high school, your child will need to go to college. This can be quite expensive, especially if you have multiple children. Investing a college fund is the ideal way to save money for your children to be able to afford to go to college. When you begin a college fund, you will have savings set aside to pay for college tuition. Small schools start at around $3,000 or more per semester. College can be $10,000 or more per semester depending on which type of college you choose. Having money in advance will allow you to cover the cost without stretching your budget too thin.
While your children are young, you may want to invest in a few properties. If you purchase a home or two, you will have the option to flip these properties to make a profit or rent the properties to others. If you have a rental property, you have a solid investment for the future. You can use the rent money to cover the cost of the home and then eventually pay the home off. When your children are grown they can live in the home free of charge, or you have the option of selling the home and using the money for your children’s college or additional needs.
A retirement plan is essential for your well-being as well as your children’s sake. By planning your retirement, you will have funds available to live on after you reach retirement age. This will cover the cost of living and other expenses. Without a retirement fund, your children will be financially responsible for you. By having this fund in place, you will be taking stress off of your children and be able to easily enjoy your senior years.
These are just a few ways you can invest when having children. Consider what will be beneficial for your family and act accordingly to secure your financial future.