The months leading up to bringing new life into this world are typically accompanied by a roller-coaster of emotions; you have to deal with the fact that you'll most likely experience morning sickness and start putting on weight, but at the end of it all, you get to celebrate the miracle of childbirth. However, bringing new life into the world has its fair share of responsibilities. As a parent, you'll need to anticipate your child's future needs to ensure they are secure by doing the following:
Secure Adequate Health Insurance
Every parent's dream is to have their child bloom and flourish like a flower. However, increased medical costs and inflation could jeopardize your child's health. If there's anything the Covid-19 pandemic taught us, it's this: you can never predict the future. Therefore, as a responsible parent, the best you can do is get adequate health insurance that covers all your health needs. Not all health covers include specialty drugs, which typically cost much more. In fact, by 2023, Payerally projected over $500 billion will be spent on specialty drugs. Therefore, you'll need to be keen when choosing a plan to ensure you get a comprehensive one.
Invest in Your Child's Higher Education
It's no surprise that after your child reaches a certain age, they'll need to start going to school. Educating your child is costly, especially when they start higher education. It's never too early to start saving. Some recommend saving for college before your child is born, as the cost fluctuates. Hilary Cairns states that college education expenses have increased by 50% over the past decade. It's therefore important to set up a college fund as soon as possible.
Get a Retirement Plan
As you're busy trying to give your children the future they deserve, don't forget to build yourself a nest that'll make you financially independent during your sunset days. According to Jacob Wade, Americans are not saving enough for their retirement in the hope their children will care for them. This is a grave financial mistake that can end up costing one greatly. Save and invest enough to secure a comfortable retirement and avoid burdening your family.
Health complications tend to crop up as you age. Sometimes, you might need to visit a nursing home for necessary care. The monies you set aside for retirement are handy when your kin finally books a slot in your preferred home for older people. If, for example, you choose to go into a semi-shared room in a nursing home in New Jersey, you can expect to spend 11,000 dollars each month, according to Porzio Planning.
Teach Money Lessons to Your Kids
Although it's the parent's responsibility to ensure financial security for their children, you shouldn't spoil them. Don't give them the silver spoon if they don't know its value. As responsible parents, encourage them to have a healthy relationship with money. You could, for example, pay them for completing chores such as lawn mowing. Get them a piggy bank where they can save part of their earnings. They'll carry these teachings and habits into their adult lives.
Teach your child to be more independent and responsible. Let them know the importance of filing income tax returns. Your child may have heard you talk about the tax season, but you need to help them understand what it's all about. Teaching them about the importance of filing returns early enough prepares them to be responsible for filing their taxes in the future. The IRS continues to report an increase in tax filers. For instance, in 2018, the expected number of individual taxpayer returns was 155 million compared to 2023, projected to be upwards of 168 million.
From the moment a child is born, they enter a rapidly changing world. Besides the changes in their bodies, life changes as well, and rapidly. Your duty as a parent is to prepare them to deal with these changes and come out victorious.
