Savings Accounts Offer A Viable Strategy Regardless Of Your Financial Status

Category: Finance.

Opening a childrens savings account instead of buying bonds when planning for your childrens financial future is a savvy choice. We do everything we can take care of them responsibly.

From the time we first become parents, of course we want the best for our children. We feed, clothe and love them, and hope that they ll grow up to be everything they can be, with full and active lives. Life insurance is one way to help our children make sure they have what they need if the guardians we choose for them do not have the financial means to provide the life we want for them. However, if something should happen to us as parents, what would happen to our children? Savings accounts offer a viable strategy regardless of your financial status. First of all, you can begin to save money in your childrens s names when they re young by making regular deposits. When you start to invest in your childrenss future this way, you do a number of beneficial things.

They can also contribute funds to their own accounts, in the process learning how important and rewarding saving can be. However, unlike many college savings programs, funds in a childrens savings account do not have to be spent solely for education in the event, they choose not, god forbid to go to college. This can help offset the cost of tuition for college as educational costs in the country skyrocket or for any other educational programs they might need in the future. Money is available should there be an emergency, or for any other situation, without penalty for withdrawal. A number of financial institutions offer special childrens savings accounts, so finding a competitive rate may only require a little research. The money deposited in a childrens savings account is available to the childrens immediately. Many banks have a childrens savings account that offers no minimum age, but they may include the stipulation that an adult be in charge of the money until the childrens reaches a certain age.

Most states also allow tax benefits for either a college savings account or a prepaid tuition plan, although some states may have a limit on how much of an investment will receive a tax break. Another option is to open a 529 college savings account in your childrens name, these offer more than just a federal tax break for the capital gains tax. Withdrawals made from a college savings account or prepaid tuition plan not spent on qualified purchased may be taxed and penalized through the Internal Revenue Service. Purchasing bonds is not presently is not a good option to help secure your childs financial future. These penalties may not apply, under special circumstances, however such as receiving a scholarship, acquiring a disability or death. Because bonds hold the initial monetary investment for a set amount of time before they mature, they now have a lower fixed interest rate than the more flexible childrens savings account. For the long haul- bonds usually have a minimum of three years( and in most cases, much longer) before they actually mature.

So don t sock away your money into these bonds unless you re in willing to accept a lower return on your investment. Regardless of whether you decide on savings, purchasing bonds or both, you ll create a financial cushion for your kids future when they may need it most. With a little research for choosing the best one and regular deposits into a childrens savings account your childs financial future will be bright. This also gives you the peace of mind to know that your children will be taken care of long past your initial investments in them financially.

Read more...

It Can Often Be A Fairly Simple Process To Apply For These Types Of Loans Too - Debra Malcolm about Finance:

Holidays are exciting times aren t they? It doesn t really matter what type of holiday it is either- they all have something in common and that is that they are a break from the daily grindstone.

First, Let Us Define The Terms Offshore Banking And Offshore Accounts - Finance Articles:

Offshore accounts and offshore banking are the two keywords in asset protection.

Consumer Spending, Increased Investment And A Hot Housing Market Have Led The UK Economy To Beat First Quarter Predictions - Finance:

Consumer spending, increased investment and a hot housing market have led the UK economy to beat first quarter predictions. Fuelling the economy has been an growing housing market, where housing values continue to climb, despite recent rate hikes that the Bank of England had hoped would cool things off a bit.