When you're a parent, your children's financial future is one of your greatest concerns. It's natural to want to make sure that your kids have everything they need to succeed in life, and that can be particularly true if you're planning on helping them with college. But how do you create a solid financial foundation for your child without putting your own retirement at risk? We want to help you give your children an early start on their financial literacy so that when they leave home and enter the workforce, they'll be able to take care of themselves. And when the time comes for them to go to college, they'll be ready with a solid foundation in financial management, which will help them make smart decisions about how to pay for their education expenses.
While parents are often focused on their children's education and future career opportunities, they should also be thinking about the financial side of things. Unfortunately, many young adults don't have a great understanding of basic financial concepts or how to manage their money. The best way to ensure that your children will be able to take care of themselves and their families as adults is by setting up a solid financial foundation for them to build on.
Minor accounts are a great way to start your child on the road to financial independence. A minor account is opened in your child's name and managed by you, the parent. This type of account allows you to teach your children the value of money while they are young, while also giving them the opportunity to learn how to manage their own finances. These accounts have low minimum deposit requirements and allow your children to earn interest on the money they save. Some banks offer minor accounts with no fees or minimum deposit requirements, so you may want to shop around for one that works best for your family.
With the rising cost of college and the increasing number of students graduating with student debt, it's more important than ever for parents to start saving for their children's education as soon as possible. The earlier you start saving, the more time your money has to grow. College funds offer an excellent way to save money for your children's future education. There are several options for college funds, but the most common is a 529 plan. A 529 plan is a tax-advantaged savings account that can be used for qualified educational expenses at eligible colleges and universities. You don't pay taxes on withdrawals from a 529 plan as long as they're used for qualified expenses.
With our wide range of services, we can help you plan for retirement, and save for education or other major expenses. Whether you're just starting out or have been saving for decades, we can help make sure that your money works for you and not the other way around. If you're looking for an experienced, knowledgeable advisor who will help you achieve your financial goals, Mike Garcia is ready to help. Contact our office for more details or to schedule a convenient appointment.