When it comes to our children we want the best for them. Often the “best” are things we didn’t have as young ones. Maybe they’re even the things we valued the most. Either way we want to give our children the best lives and prepare them for the future the best we can.
Two things I want to pass on are, first, love and, second, the knowledge to become financially secure. My parents and family gave me more love then I knew what to do with. We weren’t an affectionate family and with three brothers, emotions were not shared as much as punches. However, I still greatly value a few things.
My parents allowed me to be honest even when the topic was not pleasant. If I got in trouble, I could go to them for advice. My father often ended his advice with, “you are a grown man (at 13), live with the consequences of your decision.” Tough love, but I knew my choices packed consequences. I still play this phrase over in my head when I face a decision.
Another great lesson learned was budgeting. Having five total children and seven people under one roof, my parents had to be skilled. We always had what we needed and sometimes even what we wanted. However, when it came time for college, tuition money was not on the tree my mom always pointed to.
I have a three pronged approach to saving for my daughter’s tuition. One mutual funds. They do have a tax penalty but so do other college based investments if not used just right. Mutual funds allow more freedom if she gets a scholarship or chooses not to go to college. The rate of return is the same, if not better. Then she can have a nice nest egg to start her own nest.
The other two facets are boring. Savings and CDs. Savings is self-explanatory. For the CDs: I do a 12-month CD every month and when they mature, I let them roll-over while adding more money to them.
Give your best to your children, too.