In honor of February being Financial Aid Awareness Month, I’m sharing several financial milestones you may want to consider if you are a parent or grandparent. Whether the child you love is in a crib or close to leaving the nest, you can give them a solid financial foundation at any age.
Make a will and appoint a guardian for your child.
Set up a college savings account. We recommend a state-sponsored 529.
Purchase disability insurance and term or whole life insurance for yourself.
Elementary and Middle School-Aged Children
Connect simple chores (in the early years) and more advanced chores (in the latter years) to incentives and rewards.
Help your child open and manage a bank account. Many banks offer custodial checking and savings accounts for children under 18.
Talk to your children about budgeting and involve them in major family financial decisions.
Teens and Young Adults
Add your teen as an authorized user on one of your credit cards. Learning to handle credit responsibly is an important life skill.
Prioritize your retirement. Failing to do so will put a financial burden on your child(ren) as you age.
Little by little, shift financial obligations to your teen or young adult. Start with something small, like their portion of your cell phone bill.
I hope this guide proves helpful for you and the children in your life, whatever their age. As always, our team is here if you have any questions or needs related to preparing for the future.