The world today has many things going on that have garnered attention following the 2020 pandemic. The most glaring of them all is the financial situation of America, as many are looking for new ways to generate income and save. You may think it takes a lot of money to accomplish this goal, but there are ways you can attain this on a budget. Today I will give you options you can use to secure a great financial future.
DISCLAIMER: This is not to be considered financial advice. Talk to your financial advisor or call Va’Delrius Wilson at (318)307-6780 or by email at wilson.vadelrius@yahoo.com.
LIFE INSURANCE
The first thing you want to obtain is life insurance. The common consensus about life insurance is that it can only be used for funeral costs, but death comes with many expenses and losses. Four common situations that arise in premature death are debt, loss of income, mortgage costs, and future education funds all of which can be covered using a life insurance policy. Term life insurance can be a great way to cover you and your family for a low premium with a high face amount. By adding your income per year, debts, and calculations of your children’s college education together, you can determine the right amount of coverage you need. Death benefits are also tax-free income making it a great way to transfer wealth as well. The purpose of life insurance is to create an estate.
SAVING FOR COLLEGE AND BUDGETING
With your family now protected, you can budget comfortably and build passive income. You can place your money in investment vehicles such as annuities and mutual funds, at low costs in some cases. Investors take your contributions and invest dollars into the stock market on your behalf, giving you percentages on returns. By doing this you’re not only saving money, but it is also growing on its own. There are even savings accounts for your children you can use that grow funds for their college education such as “Qualified Tuition Plans” or “529" accounts. This plan is for education purposes, and there is no minimum open or contribution to the account. A savings account with more flexibility for children would be a Custodial Account. Parents or guardians control the account and offer various investment options and help get your child on the right pace starting.
Having funds for college is important, not only for education but for daily living as well. Year after year tuition rates and the cost of living is steadily increasing. For current and prospective students, sit down with your parents to determine costs and expenses to allocate dollars to appropriate areas. A spreadsheet can be used to help determine monthly income, food costs, and money to have fun with friends. You’ll also be able to start building savings as well through mutual funds with plans starting as low as $25 a month depending on the company.
If you have a young adult that is currently in high school understanding the TOPS Qualifications, ACT Scores, and GPA Requirements is very important.
BUILDING CREDIT
Another thing you will want to start early is building credit an easy low interest way of doing this would be acquiring a credit building loan. Visit your local credit unions or banks to get this and the method is quite simple. They would place the loan in an account you will not be able to touch but it would pay back itself over the time of the loan. As the process goes your credit score will jump significantly giving you many advantages after school is over.
I hope this information is helpful to you and your family to help you gain financial advantages in the future.
RESOURCES FOR KIDS
The holidays are on the way, and this is the perfect time to teach your children about financial literacy. Having them work (chores), save, and make decisions about buying presents, baking supplies, or craft materials to give gifts to friends and family.
There is a wonderful kid-friendly craft that your child will love making for the holidays! These foam ornaments could make great teacher gifts!
Check out these 50 ways for your kids to earn and save money!
25 Fun Money Games and Activities for young children.
DISCLAIMER: This is not financial advice. Contact your financial advisor for any information you may need for further information. You can contact me at (318)307-6780 or by email at wilson.vadelrius@yahoo.com.
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