From Graduation to Retirement: Setting your kids up for Financial Freedom
This is your chance to set your children up for success with a road map to a secure future.
The average life expectancy is now over 80 years, and it’s important for everyone to plan for the future’s finances now. In this article, we’ll discuss the important steps you can take to build wealth over the next 50 years of your life, from high school graduation to retirement.
The road to financial freedom starts with good financial planning and budgeting. As a parent, you can help your children by teaching them basic budgeting skills—such as setting up a budget and tracking spending—which will put them in a better position to make sound decisions about their finances.
Additionally, opening an asset savings account as soon as possible and contributing regularly to it will help fund big expenses.
In addition to budgeting and saving, it’s important to equip your children with the knowledge of investing. Investing is key to building wealth over time and can be done in many different ways. Real estate has long been a popular way to build wealth over the long term. Investing in real estate and cash flow businesses that generate income, appreciation, and tax incentives is a proven way to build wealth over 50 years.
You can start a cash flow business or purchase an existing one, or even a franchise to get started. Consider the type of business you’re interested in, the amount of time you can commit to it, and the risks involved.
It's also important to instill the desire to save for retirement in your children, as this is a crucial aspect of financial freedom.
As soon as your children enter the workforce, it’s important that they begin contributing to a retirement account. One of the most important aspects of retirement planning is understanding the power of compound interest—the interest gained on the interest earned.
The earlier your children start saving for retirement, the more their money will accrue over the years. Give the gift of financial security to your grad and help them start their journey on the right foot.