Are any other parent's out there currently realizing they need to start doing better at financial planning?  I know I am.  It's something we aren't taught in school but something that is so important as we get older and especially when we become paretnts. My husband and I have really starting sitting down and having serious conversations about our future financial planning.  If you want to create an extensive financial portfolio for your childrens and your future theres plenty of ways you can do it.

If you're wanting to setup an account that is stricly just for your children a UGMA account might be the way to go. UGMA stands for Unifrom Gifts to Minors Act which allows the transfer of assests from adults to minors through accounts that are managed by the custodian until the child becomes legally of age in their state.  You don't have to have a trust for this account and there is no contribution or withdrawl limits which is really nice. These accounts are flexible because you can use them for education and other expenses.

Another potential option for familiy financial security is term life insurance.  If you're not familar, term life insurance is life insurance you or your spouse get.  It provides you coverage at a fixed rate of payments for a specific amount of time determined by your policy.  Once the fixed time has passed, coverage ends.  If your spouse was to pass away while paying for term life insurance, the benefits would be paid to the beneficiary.  This is typically a more affordable way to to get benefits in the case of a spouse passing away.




The last option that is directly for your children's benefit is a custodial roth IRA.  A custodial roth IRA is different from a traditional IRA because it is an account that is specifally for a minor with earned income that a custodian (usually the parent) holds for them. All the money in the acount belongs to the child but is managed by the custodian until the child is of legal age (varies between 18-25 years of age depending on the state).  This allows the minor to start saving money early on with compounded growth.  The money can then be used to buy a home in the future or even on their education.


What are some ways your family is planning for the future financially?!

As always, thanks so much for stopping by!

XOXO Cassie

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