When considering long term plans there are ways that you can plan for the financial security and future of my child. Following these steps will give you an idea of how to do this.
Planning for Future Finances
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Develop a Saving Habit
It is necessary to consider future expenses that your child may incur. Things like higher education or dowry payment can catch you by surprise if not planned for. Develop a habit of putting money aside every month. This can be checked out from your salary account and deposited directly into your child’s account that you would have set up.
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Consider Saving for Education
With the ever-rising cost of education setting up ways to meet these costs is prudent. There are different insurance packages that can help you cater to this. Education policies are designed for you to save money and get milestones payouts throughout till the policy matures. This is a great way to save for your child’s education. Contact your insurer to know exactly how this works.
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Get Life Insurance
Life insurance is designed in a way that ensures your family’s financial security in the event that you die. This is a great way to make sure that your child will be catered for even when you are not there. You can contact your insurance provider to get to know more about this.
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Get Health Insurance
Childhood ailments and disease can cause major strains to a family’s finances, especially those that involve hospitalization. Signing up your child for NHIF and also securing them with a medical cover will cushion your savings in the event that they fall ill. Contact your insurance to know more about these health packages.
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Get Life Insurance
A will gives instructions on your wealth in the event that the unspeakable happens. Assets can be clearly assigned to guardians and liquidated for your child’s benefit in case you are no longer with them. This will reduce any cases of squabbles amongst relatives which is quite prevalent and all resources will be secured for your families benefit.
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Get out of debt
This is probably the most important piece of advice. Don’t get into debt. In case you are no longer in the picture because of death, the possibility of leaving your child in the hands of auctioneers becomes very real. Settling debts immediately is thus advised.
Setting the above in place should help you secure your financial future and meet some of the expenses your child may incur when growing up.
Disclaimer:
Please note that development differs from one child to another.
Content intended for educational purposes only, and not a substitute for medical advice from your doctor.
Be careful when using any products mentioned on this website. We hold no regulations for such products or their providers.
Last reviewed April 2019
Sources: mom365, daveramsey, parents
