Are you a parent? Planning to become a parent? Even if the thought is “someday” in the future, considering how your kids fit into your financial future now is smart planning. By thinking ahead and budgeting strategically, your nest egg can grow over your child’s lifetime.
Have a new bundle of joy? Start saving for their future now.
Establishing an account for your infant could add up to a sizeable nest egg by the time he or she reaches the age of 18.
Have young children now and looking for ways to save day to day?
Check to see if your company offers a dependent care FSA account. If both parents work, your family may be able to set aside up to $5,000 pre-tax into this account to pay for qualified child care expenses.1
And then, there’s education.
The average annual cost of public education has increased 6.5% each year over the past decade. If costs continue to rise at this rate, by 2030, public tuition could reach over $44,000 per year, making the total cost for a 4-year degree between $175,000 and $200,000.2
By starting early, you could theoretically have 18 years to save. Starting a 529 College Savings Plan now allows you to put tax-advantage savings away every year.
2U.S. Department of Education