For parents, it is natural to want to provide the best for your children. From the food they eat, the clothes they wear, you name it, I’m pretty sure moms have it covered. I know my mom did!
And in today’s trying times, it’s all the more important to secure your child’s financial future. If there is anything the pandemic has taught us is to always be prepared. If you’re a new parent, it’s never too early to start. Here are 4 ways to prepare for your child’s future.
1.Teach Them Smart Financial Habits
Sure, we teach our children to develop good manners such as how to respect elders and be kind to others. But one thing I’ve discovered is that parents sometimes fail to teach their children good money habits. As a result, children don’t know how to manage their money when they grow up, especially if nasanay sa hingi.
You could open a savings account to teach them about money. For instance, have them set aside a portion of their baon to put in their savings account and only use it in case of emergencies. You could also use it as a reward system where they can use the money when they want to buy a new toy or clothing.
2. Let Know Them About Wants versus Needs
It is important to let children know the difference between wants and needs. Most kids can’t tell the difference between the two, so it’s good to let them know how they’re different. For example, if your kid wants to buy a new pair of shoes but they already have a lot of shoes at home, then it is a want. Even if they don’t buy new shoes, they can still go out or go to school.
But if their shoes broke or if they’ve outgrown them, then they need to buy new ones because they can’t walk using broken or too small shoes. Teaching them to identify their wants and needs will also teach them about discipline and prevent them from becoming materialistic.
3. Plan for Their Education
It’s never too early to plan for their education. And yes, kasama na college nila. You could look into educational plans to cover their school years. There are plans that are payable in 5 years like SunLife’s SUN Smarter Life Elite 5. If your child is still a minor, then parents can withdraw the endowment and use it for their education.
Saving for their education means you won’t have to pay for their tuition upfront, mas magaan pa sa bulsa! This means you don’t need to worry about looking for the means to pay for their tuition next school year.
4. Invest in an Insurance Plan
It may sound cliche but prevention is better than cure. After all, life is unpredictable. We don’t know when something unfortunate will happen. It’s best to leave behind a pamana for your children so they can use it even when the worst case scenario happens.
It’s also better to start investing now than when you’re older. Don’t forget, insurance plans can be priced depending on your age and health condition. If you’re looking for a comprehensive insurance plan, the Smarter Life Elite is one that can span for 3 generations. That way, the parent, you, your child, and their future children can benefit from it.
It’s affordable too because you only need to shell out Php 499 per day for 5 years and you have the following benefits, just to name a few:
Almost Php 1, 000, 000 in life insurance
Php 421, 000 accumulated endowment in 20 years - which is withdrawable
Php 274, 000 illustrative withdrawable dividends in 20 years
And lifetime coverage of the insured!
However, this is not your only option. There are regular pay and 10-year-pay options, too.
To know which policy is fit for you, feel free to send us a message or schedule a free coaching session to find the best insurance policy for you and your family.
Remember that insurance plans are subject to approval under some guidelines, some of which are briefly explained here. Send us a message on any of these channels so we can personally answer your questions.
About France Afulugencia
Coach France is a Sun Life Macaulay Club member (Sun Life's elite advisors all over the country). A personal finance advocate, she dreams of helping clients achieve their personal goals through habit building. She graduated magna cum laude from the University of Santo Tomas and worked as a senior marketing and public relations associate before being a full-time financial advisor.
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