5 Ways to Protect Your Child’s Future
Raising a child is a tough job. So all those parents who have been doing this must be praised for their hard work and dedication.
It is a long journey full of hurdles, from making sure that your house is baby-proof to protect them from any harm to selecting the right school and college for their education.
Every parent knows how to raise their children. However, here we have listed some expert advice for all the parents to do an even better job at parenting.
So, without further ado, let us get straight to the topic.
- Set up a trust
Among the things you can do for your child’s future, setting up a trust fund might be one of the best. Contrary to the misconception that trust funds are developed for wealthy families and their kids to one day inherit the wealth; trust funds are for everyone.
The trust fund will keep the money secured for your child until they reach a certain age— in most cases; it is 18 years. The benefit of setting up a trust fund includes:
- Paying reduced estate taxes in the future
- Keeping your estate out of probate
- Protection against lawsuits and creditors
Now let’s address the elephant in the room: “how to set up a trust”?
Setting up a trust fund is not very tricky. You have to decide the following things to set up the trust fund:
- Purpose of the trust fund
- The funding source for the trust fund
- Choose the person who will manage the trust funds until your child comes of age – in case of your untimely death
- Legally creating a trust fund and the documents
- Transfer the assets to the trust fund
- Pay attention to the health of your child
The other thing that parents need to do is take care of their child’s health. It includes opting for a balanced diet and ample physical activity for your child.
Be careful about what your child eats in the house. As for school, give them a healthy lunch that fulfills their growth requirements. During the growth years of a child, proteins are vital. Ensure that their diet includes meat, poultry, dairy, lentils, whole grains, and fish. Fruits and veggies are needed too.
Shaping a healthy lifestyle for your child is incomplete without physical activity. Encourage them to take part in sports at the school.
You must also encourage your child to participate in community development and volunteering activities. These activities instill teamwork, problem-solving, and critical thinking skills in children. The life skills mastered in the early years of life will also help them later in their lives.
- Prepare your will
We all know that thinking about your death is scary, and most people will put this thought of dying on hold until they are taken over by it. You can keep on ignoring that one day this life will be over. But what about your kids? Have you planned anything about their future? How will they survive, and who will cater to their financial needs?
About 325,000 adults die of sudden cardiac arrest every year in the US. In 2020, approximately 200,955 died in sudden and unintentional accidents. If half of these people have dependents to care for—on top of that, have no will made during their lives—think about their kids’ future. Do you want it to happen to your kids? If not, start working on your will today.
Don’t be one of the 60% of Americans who don’t have a will; hence leave their child at the mercy of the world. Making a will helps you be sure about your child’s wellbeing.
- Purchase insurance for your kids
Having a will is an important step; however, it is not enough. You have to decide about the health insurance for your kids too. Meet an insurance provider, look at the policies and packages, and discuss the terms and what each policy will cover.
Buy a policy that helps your family and kids in events of physical injury. At the same time, when buying health insurance, buy a premium waiver plan that offers maximum financial support to your family in case of any financial crisis.
- Save funds for the education of your child
Sending your child to esteemed universities is every parent’s dream. But this can be a very costly and financially depressing dream if you are not sure how to fund the education. Planning about your child’s education and saving funds from the time they are born can provide some cushion against the mounting costs of education every year.
Purchase a child insurance plan that provides long-term benefits to your child. These plans help your child achieve their educational and life goals by offering additional finances and tax benefits. You can choose the option of partial withdrawal, which allows you to arrange for the money at critical educational milestones in your child’s life.
Conclusion
Providing a safe future for your child is the dream of all parents. But not all of them know how to work towards achieving this dream. Various elements come together to protect your child’s future, including health insurance, setting up a trust fund, drafting a will, and enough finances for education and other needs. The article mentioned above is a concise guide for all the parents looking for a lead to start planning their child’s future.