Save for your children now rather than later

My wife and I have trust funds established for both of our children and we did not wait to do it. To give an example our son that was just born June his account was opened only 10 days after birth the time it took to receive the social security card. The second step is telling all relatives and friends that you only want half the money they were willing to spend on toys and the other deposited into their trust fund. These days it is very easy to send money electronically from your banking account online. People that do not want to transfer electronically then have them give it to you until your child is old enough to start learning about saving money.

If you are at a deciding point between a trust fund or college savings fund there are benefits and negatives between both choices. We decided on the trust fund and was able to easily established it on our existing E*TRADE account. The funds from the trust fund can be used for any expenses that are decided on for your child. The negative is that the fund is taxable but at a lower child rate and is included with the parents assets. The 529 college fund is great for the fact that it is not taxable but if not used for the child’s education then it will be penalized. At another time I will post an article that will go into greater detail about child savings accounts.

It is a fact according to most studies, well in my opinion also that children will pick up the habits of their parents and carry them on into their lives. The way that you manage your money is important not only to you but to your very impressionable children. I know there are always exceptions to the rules and every person is responsible for making their own decisions. Yes, this is the case with me because I was a rusty spoon child but I decided to make a better life for myself and family. My family on the other hand still till this day lives the poor lifestyle never trying to achieve a higher standard of life. I know some people are happy this way and if you are then stop reading my blog and stay poor and happy then.

According to Capital One’s annual back-to-school shopping survey it reveal that fifty percent of teens want to learn more about money management. They want to learn more about budgeting, checking, saving money, loans and investing. This survey also stats that children prefer to learn from parents and that they are actually willing to listen to what we have to say!

Excuses are what I here any time this subject comes up at lunch with my co workers! Here is the most recent excuse I heard; I called the bank and since we are overseas they are unable to start a savings or trust fund for us stateside. I said that is really funny since it took me 5 minutes online to start my son’s account while stationed here. She said but that I used another bank than her, yes I said that is true I did. I then said so what other institutions did you try, she said none. Oh I said, so you have not saved anything for your daughter and she is now 1 ½ years old and my son is 2 weeks old now and has more money saved already!

Very sad I say people not getting off their butt and doing something for their children and more than likely if you come from a background such as I did then your parents probably did not save a dime for you either. So start a savings now if you truly care and have not or you too can be just like your Rusty Spoon parents.