Children are always a source of joy, but securing their children’s future is one of the main concerns that parents face.
The best way to achieve stability is through financial education for the whole family, good investments, and assistance resources, such as social security insurance.
Allied to education is planning, responsible for putting together good strategies and diversification of resources so that, in the future, your children are independent and you can enjoy the tranquility of the task accomplished. So, check out the tips that can help ensure your children’s future.
Why worry about your children’s future?
Even if the child is very young and seems too early to think about college or financial independence, this concern should be part of your monthly financial routine. After all, leaving to think about it on the eve of an entrance exam can mess up your finances.
An amount of R$ 100.00 invested monthly for 18 years can mean the value of a private undergraduate course. Much easier than paying a monthly fee 5 to 10 times higher in the future, isn’t it?
In addition, none of us are unforeseen, so good financial planning will be essential in the event of a major event.
What does it take to ensure a good future?
Building a stable and financially secure life is made up of small actions that add up to a solid foundation. Shall we go to them?
Teach your children about financial education
Our formal education does not usually address financial education. We learn all kinds of math, but little is said about the power of compound interest.
To achieve financial stability and ensure your children’s future, it is necessary to teach them, from an early age, how to balance accounts, control expenses, plan a budget, set goals, and invest.
You can teach them to save to buy something, let them keep track of small amounts of money, and be responsible for writing down their own expenses, as a school lunch. This will help create awareness of how best to handle money.
On the other hand, teenagers can participate more actively in conversations involving household bills and family financial planning.
Invest in diverse options
It’s been a long time since the savings account stopped being a guarantee of the children’s future. With an extremely low yield, since it doesn’t even closely follow inflation, it ends up devaluing your money.
There are other options in the financial market that are much more profitable and as safe as savings. A good example is Treasury Direct bonds, which can be purchased monthly for less than R$50.00.
Buy and sell negotiations are simple and can be done in banks or stockbrokers.
It is also important to research investments and diversify. But ideally, most of the equity is invested in low-risk assets, such as CDBs, LCIs, and Investment Funds.
Research the best long-term returns, as you will leave the money invested for a long time under the magic of compound interest.
Another option to guarantee the future of the children is the pension for minors. You establish a monthly application amount and a future date for withdrawal, which can be when they reach the age of majority, for example.
The withdrawal can be made in full, for a trip or exchange, or in monthly withdrawals to pay for a college. Before hiring, check the fees charged and how the Income Tax is levied.
Use the different types of insurance.
This is another way to bring financial peace of mind to your children. Having life or personal accident insurance ensures that they will have financial support even in your absence.
Policies can be made naming children as beneficiaries, for example. Life insurance is a simple and easy way, as you can include a monthly amount that fits your budget.
Have an emergency fund
Having money saved for times of crisis is essential. Ideally, the amount destined for the emergency reserve should be 10% of the monthly income.
This value should only be used in times of emergency. Investments to pay for the children’s college, for example, must be separated from the reserve.
Ensure health protection
In addition to teaching the child good eating habits and the practice of physical activities, it is necessary to guarantee access to medical resources, such as consultations and exams.
It is difficult to depend exclusively on the public health system. Therefore, one should think about a health insurance or health care plan.
What is the value to guarantee stability to family members?
The answer to this question is quite relative as the value depends on the standard of living you have and the lifestyle you lead.
Basically, to have stability, you need investments, assets, or some insurance policy that guarantees a monthly income sufficient to cover the basic needs of housing, food, education, health, and leisure.
How can different types of insurance help secure your children’s future?
We briefly talk about some insurances and how they can provide security to the family in delicate moments.
It has already been noted that, in addition to being a good strategy, they guarantee a pension for their children in the event of their parent’s absence, whether due to illness that prevents them from exercising the profession or death.
Insurance plans that help bring financial comfort to the family are:
- life insurance;
- personal accident insurance;
- health insurance.
Learning to take good care of your money, choosing good investments, and transferring that knowledge to your family is the best way to ensure your children’s future.
Make your personal planning a routine and keep your family budget up to date. In this way, you will achieve financial stability.
Do you want to take the first step to leave your family well assisted? Contact us.