After I entered the job force at 18, I had money problems for quite a number of years. I earned a decent income, but I lived paycheck to paycheck and just felt like I would never get ahead financially. One day, determined to get ahead, I decided to record every purchase I made for a month to find out just where my money was going. I learned a hard lesson that day that small purchases here and there throughout the month really add up. I committed to a much smaller budget and began stashing savings away. Then, I researched the world of investing and made a few strategic ones with some of my savings. I am now doing much better financially, and I want to help others who need it, so I am starting a blog. Come back often for money management tips and tricks explained simply!
If you have never thought about setting up a trust fund for your child, you should know that this can sometimes be a good option. It can be beneficial for a few reasons, and one reason is that it can help encourage your child to actually attend school. Here's why:
You Can Ensure Your Child Has Ample Money to Go to College
For one thing, by setting up a trust management system, you can help ensure that your child has enough money to go to college. The truth is that college educations are not cheap nowadays, and without enough money, it can be difficult or impossible for your child to get a degree. Student loans are one good option, but they can leave college graduates in a ton of debt. By setting up a trust and ensuring that there is enough money in the trust to pay for your child's college expenses, you can help ensure that he or she does not have to worry about finances when determining whether or not to go to school.
You Can Use it as an Incentive
You can always set up your child's trust fund so that he or she will not receive the money from the trust fund unless he or she goes to college. For many, knowing that money will be available for them if they go to school can be enough of a motivation to actually enroll themselves in college and to put effort into doing well in school. Additionally, putting the money in a trust fund that your child cannot touch can also help prevent your child from being tempted to avoid going to school due to not having a financial need to get a good job. If your child has access to a large sum of money, he or she might not see the importance in going to college and looking for a career. If he or she is not able to access the money without going to college, however, this can help with encouraging your son or daughter to get an education.
As you can see, even though you might have never really thought about setting up a trust fund for your child, it can be a good idea if you would like to ensure that your child goes to college. Since this is something that a lot of parents worry about, it can be a positive thing. If you talk to someone who helps people set up and manage trusts, you can get started on getting your trust set up.Share
11 August 2017