Securing your Child’s Financial Future
Learning that you are about to become a Parent is the biggest roller-coaster ride.
First there’s the nausea and nervousness about making it through the pregnancy. Then there’s the reality that you are actually going to have a human being to take care of. Then there is the expenses! The crib. The diapers. The car seat. The stroller. The cute clothing. The adorable shoes. The handy cup holder for the stroller. The matching mom and me shirts. You get the picture.
You could have been responsible with money your whole life-planning, saving, and staying on budget. But securing your child’s financial future is a whole new ball game. Don’t know how to plan for your little one’s financial future? Return the mom and me shirts and read on for tips.
A financial planner will educate you about life insurance, RESP’s and cash-flow planning. They will look at what your current financial situation is, what benefits are offered through work and will talk about some of the bigger up-coming expenses. It may take more time than you expect, but you will be grateful for all the guidance, especially in getting the right life insurance policy. Meet with your financial planner whenever there are changes that may impact your family’s finances.
Start a College Fund
Once you start keeping a closer eye on your spending, you’d be surprised how much you can stash away for college or university. Yes, a little financial sacrifice on your end is a must but there are plans out there to help you meet your savings goals, like the Registered Education Savings Plan (RESP). It’s a tax-sheltered plan specifically designed to help you save for your child’s education. Stick with it!
Open a Savings Account
Teaching your child how to save and taking them through the process of saving is one of the best ways to prepare them for important financial decisions ahead. You can also teach your child the importance of saving when you begin an allowance and guide them as they manage their own account balance.
With all the groundwork laid, now you can help your children become financially savvy and secure. Talk about earning and spending as a family, apply these tips and set the groundwork early so your child practices good spending now and throughout their adult lives.
How to Prepare for The Unexpected
Even the most careful and meticulous planner may be taken by surprise with news that they hadn’t planned or prepared for. Life likes to throw curve balls at you while you’re least expecting it, but if you plan ahead, these curve balls can be much easier to deal with. Here are the top 4 things you should start now and do your future a favour!
1. Plan for Natural Disasters
Natural disasters can be devastating, and having a plan on how to react during this time can make all the difference. An emergency kit with a five-day supply of non-perishable food for you and your family is always good to have on hand in your home, office or car. Emergency kits should also include bottles of water, flashlights, batteries, and a first aid kit. Some other items to keep on hand: a radio, extra car/house keys, cash and photocopies of important documents. Take just 1 hour this weekend to get this done – these kits do not have to be large or elaborate, but can make a very difficult situation much easier to get through.
2. Critical Illness
While it is not pleasant to anticipate you or someone in your family being stricken with a critical illness, it is important to be prepared. All too often, people become critically ill and are unprepared for the loss of income or increased medical expenses. It can also be extremely stressful to think about providing for your loved ones during this time. An emergency fund and a critical illness insurance policy will help you immensely to make things less stressful and ensure you and your family are taken care of if something happens.
3. Life insurance
Life insurance is especially vital if you have children. It can help protect your family in an unthinkable situation. The life insurance you get should provide enough money for your family to cover your funeral expenses, possible debts and live on after you pass away. If you have children, it should be enough that it can help cover the cost of their post-secondary education. While it may be daunting to think of, the unexpected happens and you want your family to be secure if you are not around.
4. Back Up Budget
This is important. You may want to believe that you will always have your paycheck to fall back on, but downsizes and budget cuts happen all the time within companies, and being able to survive during a period of unemployment is critical. Unexpected expenses may arise, and you need to be prepared. Create a back-up budget now, which should include 6 months salary saved up, to make it easier to put into place if the time comes. This includes making a plan to reduce your cable bill, cell phone plan and payment plans for expensive purchases. Having a solid plan can help you get through a time of crisis.
By being prepared for the unexpected, peace of mind ensues. You should be lucky enough to never use your back up plans, but you will sleep much better knowing that you are ready for whatever life throws at you.
Get up to $750,000 in coverage for No Medical and up to $1 million on all other plans.
Having a life insurance plan in place when people rely on you can make all the difference in the world. From mortgage payments to covering a child’s education, these expenses can be covered.
Make sure that your loved ones are protected. Get covered. Apply today!