As a parent, I’m driven to set my child up for a future of mental, emotional, and financial stability.
Right now, my three-year-old daughter is at the age where her focus is simply learning. My hope is that she’ll grow to love it, because a love for learning opens doors.
Beyond education, I’m focused on creating a strong financial foundation for her—one that gives her a head start at 18.
Here are three tried-and-true strategies that I believe will set her up for success.
1. Start Building Their Credit as an Authorized User
When it comes to credit, most of us learn the hard way. But it doesn’t have to be this way for our kids.
Adding your child as an authorized user on your credit card (when used responsibly) is a powerful tool to build their credit profile before they even turn 18. This can give them a strong credit score, which is crucial for accessing financial opportunities.
Personal Story: I added my daughter as an authorized user when she was young. By the time she’s ready to make her own financial moves, she’ll have a credit history that supports her. Growing up, I didn’t have this, and I had to work hard to build my credit from scratch. Now, I know she’ll be able to navigate life with fewer financial obstacles.
Tip: Be disciplined with your payments—this strategy only works if you pay your bills on time.
If you’re consistent, your child will benefit from a high credit score that opens doors for things like lower interest rates, easy apartment rentals, or even job opportunities.
2. Provide Security Through Homeownership
Homeownership isn’t just about having a roof over your head; it’s an investment that builds wealth and offers stability.
Owning a home gives your child an asset they can rely on when they need it most.
My Journey: I didn’t have a stable home for much of my early life—my career kept me moving, and at times, I even found myself sleeping in my car. Today, at just three years old, my daughter already has a place to call home. For me, this isn’t just about property; it’s about peace of mind, knowing she has a stable environment and a valuable asset that can grow in worth over time.
Why It Matters: Buying a home can be challenging, but if possible, it can be one of the most impactful investments for your family.
A home can provide a refuge and a financial asset that will benefit your child in years to come.
3. Secure Their Future with Life Insurance
Life insurance may seem like an expense now, but it’s a gift of security that you leave behind for your family. By setting up a policy, you’re ensuring that your children will have financial support if anything happens to you.
How I See It: I look at life insurance as a way to leave my daughter a safety net. It’s like a “death gift” that will support her when I’m no longer here. Knowing she’ll have resources even after I’m gone gives me peace of mind.
Pro Tip: Look into Ethos life insurance policies available and research which one might work best for your family’s situation.
It’s never too early to start, and the sooner you secure a policy, the better.
Final Thoughts: Don’t Wait—Start Today
Whether you can implement all three strategies or just one, the key is to take action now. Giving your child even one of these financial gifts will set them up for a smoother journey toward financial independence.
Remember, it’s not about how much you do but about ensuring they have a foundation.
Start today, and you’ll be making one of the most meaningful investments in your child’s future.
Very powerful suggestions for taking care of children's future.