If you’re like most parents, securing your child’s future is probably one of the most important things on your mind. Still, you know that working long hours helps, but not if you’re making irresponsible financial decisions. If saving for your child’s academic and professional future is important, these money-saving tips will push you in the right direction. Invest in your child’s financial future today by using these strategies whenever you can.
Start a College Fund Early
Finding competitive tuition rates, let alone affording typical college expenses, is challenging. College expenses range from paying for room and board to keeping up with the cost of textbooks. Financially, a sizable college fund will help your child succeed above others. A small class size with a student-to-teacher ratio of 12:1 might be common in private schools, but they can be expensive. Focusing on your child’s financial freedom for the future will allow them to focus on excelling in the classroom and standing out from other students. If you lose your job or face an emergency expense, you might struggle to build your child’s college fund. If so, consider making small deposits towards your child’s college fund on a monthly basis. Doing so will help you see stability in the future.
Here I wrote about how I saved money on college and how you can save with the Minnesota College Savings Plan.
Look for Discounts and Savings on Products
Whether you’re shopping online or heading to a store, you’ll come across opportunities to grab coupons, find discounts, and ultimately keep more money back in your pocket. All you need to do is slow down and notice these benefits. Many grocery stores, for example, will have discounts and savings opportunities printed on handouts at the front of the store. Gas stations and small businesses have large signs pointing out additional savings, many of which you can earn if you simply sign up for one of their rewards accounts. Being on the lookout for savings opportunities is a lot easier when you download apps to your smartphone. You’ll also find it helpful to develop the habit of looking through junk mail for coupons.
Invest in Stocks While Working
Part of establishing financial freedom as a parent is looking for ways to invest in stocks while you already have an income. Stocks represent a portion of ownership over a company’s dividends. Increasing your income faster by earning from the stock market can prepare you for any situation in life, even a personal injury. The reality is that, while in Texas if you’re less than 50% responsible for an accident, compensation is available. But the unfortunate truth is that, as an adult, some dilemmas won’t work in your favor. Fortunately, investing in stocks will help you build wealth faster if you’re successful. Studying financial books will add insight into the complexity of stock investing. Meanwhile, partnering with your spouse will keep you motivated and in high spirits. Remember, the extra money for your child’s future is there as long as you’re skilled enough.
Take Care of Your Credit
Regarding your credit, paying as much of your statement balance as possible will help you avoid paying too much interest. Paying your monthly payments on schedule will build your credit. Keeping your credit utilization rate at around 30% will help you appear less risky to lenders. The process of establishing a positive credit history attracts more lenders to you over time. The best part: you can apply for more credit cards, meaning greater spending power when you need it. Having available credit will help you pay for your child’s financial future, whether that means affording college, paying for treatment for a medical condition, or covering a security deposit and first month’s rent for their first apartment. Protecting your credit score requires a family-first mentality.
Live Within Your Means
Only spend less than you make. If you spend less than you make, you will see yourself building wealth as long as you’re working hard. Living within your means will give you a chance to afford things for your child that you might not otherwise have been able to afford. Spend a hundred thousand on a Lamborghini and you might regret it. But buying a store-bought pizza instead of Papa Johns or Dominos can save you up to $20. About 95% of private high school graduates not associated with a church continue their academic career and get into a four-year university. It’s clear, your chances of living comfortably with your children increase when you spend only what you have to. For example, you might prefer skipping private education since 49% of public school grads head to college as well. Living within your means will ensure you always have a choice.
Securing your child’s future means keeping these money-saving tips in mind. From starting off a college fund early to taking care of your credit, the decisions you make today will matter. Living within your means is one way to make sure you have financial freedom. And financial freedom is one of the top solutions to living comfortably for many years.