Saving for Your Children’s Future: What you Need to Know

Saving for Your Children’s Future: What you Need to Know

You may have heard the expression, ‘time flies at the blink of an eye’. Take this expression to heart so that you are not blindsided by the fact that your kids have suddenly grown up and are off to college, because time does fly.

Here are three ways to prepare for your children’s future:

 

  1. Consider Prepaid Tuition

 

These plans are exactly what they sound like: They allow you to pay for portions of your child’s college tuition now, locking in current prices — protecting you from exponential tuition hikes if your child is still years away from attending college,” notes Kristen Kuchar in a November 2017 The Simple Dollar article.

Prepaid tuition plans are offered in over a dozen states although some are closed to new enrollment. Make sure to check availability based on where your child is considering attending college.

 

  1. Explore College Savings Accounts

 

If your children are planning on attending college, one strategy to get a jumpstart on paying for your children’s future diplomas is a 529 College Savings investment plan. A 529 plan is a state or institution-sponsored savings plan that comes with tax-free growth and distributions.  

One great advantage is that family and friends can also contribute to this plan once it is established, making it a family goal!

 

  1. File a Will

 

If you plan on starting a family or have young children, it is essential to file a will if you have not done so already. It can be done quickly and inexpensively through an online service, if need be.

Also, remember to teach your kids about financial literacy when they are old enough to understand. One of the greatest gifts you can give your children is teaching them about the real-world and getting them prepared.

 

The materials on this blog are provided for informational purposes only and do not reflect the opinions of ChimpChange LLC or Central Bank of Kansas City, Member FDIC. Several of these blog posts may contain links to content on third party websites which are provided for your convenience; please note that linked sites may have a privacy and security policy different from our own, and we cannot attest to the accuracy of information. ChimpChange LLC and Central Bank of Kansas City do not guarantee nor expressly endorse any particular product, service or third-party content.