Now that you’ve finally tied the knot with your fiancé, you should be asking yourselves: “What comes next?” As you create plans for your future together, one thing that will surely cross your mind is the desire to have children.
Being a parent is one of the most fulfilling experiences, but it is also one of the most challenging. Aside from the moral responsibilities of becoming one, you must be financially capable of addressing the growing needs of your children throughout all stages in life.
If the two of you just had your first child or if you aspire to be parents soon, you need to start preparing for their future today. Here are six things you need to prepare to give your children a happy and comfortable life.
Your emergency fund will act as your family’s safety net.
In case you or your spouse gets laid off, or if your child has a medical emergency, it’s always ideal to have some extra cash on hand. Paying for hefty medical bills and the like can get very overwhelming, and relying too much on credit cards and lenders can affect your long-term financial stability.
As you and your partner create a budget for electricity, expenses, and rent, you should also allocate a portion of your income for unexpected occurrences or “rainy days.” You may have other priorities lined up, but life can be very unpredictable. Setting extra cash aside will give you some flexibility when dealt with a financial crisis.
Before you can save for another member of your family, it’s important that you save for yourself first.
It’s natural for parents to think that they should make their kids’ education a first priority. While it’s definitely important, you should remember that your children have their whole lives to pay off the remaining balance of their education loans. Tuition fees can be loaned, but you can’t borrow retirement funds.
If you want to live a comfortable life after your career, you must start preparing as early as now. Not prioritizing your retirement fund will increase the likelihood of your becoming dependent on your children, causing more financial strain for their future.
As you get older, your window to save up for retirement will continue to get tighter, so it’s best to prioritize it first. Creating multiple streams of income, applying for a savings plan, and availing of our insurance products are all excellent ways to age gracefully.
Your Child’s Education
Giving your child a better future can be easily done through high-quality education and financial protection.
With tuition fees inflating, saving for your children’s education should start before they are even born. From pre-school to college, you must be prepared to pay at least 15 years worth of education. This doesn’t include transportation costs, allowance, and the possibility of entering medical, law, or graduate school.
Allocating funds as early as now will help you avoid loans in the future. Through cost-cutting and analysis of your financial position, you can take planned steps so that you and your family can live a wonderful lifestyle while saving up for your children’s education.
Paying Off Debt
If the interest rates of your loans are high, it’s best to start paying them off as soon as possible.
Incurring debt can hinder you from saving up for important things and will affect your credit history in case you need to borrow money. With each loan you’ve settled, you can eventually roll more cash into your investments, retirement, and your children’s education.
Other than your current loans, it’s a wise option to save up for things that may cause more debt in the future. Try to foresee any events that may cause you to incur debt, and create a savings plan.
Your Dream Home
How do you picture your family five years from now? Do you live in a beautiful house in a peaceful village? Do you imagine a nice car in your garage?
When you’re saving for your dream house, you also have to consider all the amenities, appliances, and maintenance expenses that come along with it. Construction and rent expenses may be the first thing that’s on your mind, so it’s easy to get sidetracked from repairs and maintenance costs.
Building your dream home will take years, but setting this milestone as early as now will help take the necessary steps to achieve both your short- and long-term goals.
Providing Insurance for Each Family Member
Having life insurance plays an important part in protecting your family from hardship.
There are many life insurance plans in the Philippines that will give your children financial security even after you are gone. Make sure to review your policies and make any adjustments to ensure that they cover all of your family’s needs.
Secure your children’s future
By setting milestones, saving for your children’s future can be done with ease.
As the two of you plan for your future as parents, keep these things in mind. Doing so will allow you to align your efforts to your goals and help you make the necessary adjustments with your lifestyle and spending habits.
Attain financial security through the guidance of our Bancassurance Sales Executives. Go to any of our 900 BPI branches. Also, check out our blog for more financial tips and advice for parents.