Families can take loans for multiple reasons. From paying hefty loans for their kids’ college fee to buying or expanding the existing house for growing needs and space requirements. It should be pointed out that leaving a huge amount of debt for the future of your kids is the worst kind of parenting.
In this article, one of the world’s topmost financial advisory firms, Carina Advisors, helps parents plan their finances in a way that helps them avoid a debt-laden future for their kids.
Secure a Debt Free Future by Savings
Every parent must make it a habit to start savings for the future of their kids. It does not matter how small the amount or the kind of investment you are making. What matters is bringing on that level of financial discipline in your life.
If you start saving small, and build it up over the course of the next fifteen odd years, you will realise that you have saved a tidy sum. Smart parents start saving for their kids’ college fees as soon as they are born. When they reach that age, they do not have to go for student loans and start their life in debt.
Saving bit by bit also sets the right kind of precedent for your kids. They learn by example and parents can help them grow into financially smart individuals in their future.
Carina Advisors strongly recommend avoiding Credit Card Debt
According to Carina Advisors, families should try their best to avoid being stuck in the vicious cycle of credit card debts. A majority of families in USA pile of credit cards not thinking about the interest rates, the penalty payments and the bad financial habit that one gets into.
Carina Advisors also recommend that families should not fall into the trap of financial companies who offer certain kinds of loans. In other words, payday loans and unfair debt clearance loans should be avoided at all costs.
They point out that the best financial advisors work with families to help them. This means that the lowest rates of interests are worked out and a one-time monthly payment is fixed. This helps families slowly rise from their debt and ensure a better future for their kids.
Invest in a good Life Insurance Policy
Every parent should always invest in a life insurance policy. While it might sound strange and even unethical to some, it is going to help your kids in a major way. You might have accumulated some debts in your life.
However, if you do not want your kids to suffer because of that, please ensure that you set up a life insurance plan. The idea is to ensure that your kids do not suffer financially because of your actions.
You should always remember that debt is as much a psychological, mental and emotional problem as it is financial. By investing in small premiums and securing your life insurance, you will enable a far better debt free future for your kids.
Carina Advisors point out that saving, investing in life insurance and selecting the right financial advisors is the way to proceed. People should also not make the mistake of thinking that financial advisors are only to help the rich.
Normal people, like you and me can also take their help in terms of personal finances and debt issues. Do you think that parents should ensure a debt free future for their kids?
Let us know in the comments section below.