Protecting Your Children’s Future

1 Timothy 5:8 (KJV)

“But if any provide not for his own, and specially for those of his own house, he hath denied the faith, and is worse than an infidel.”

As soon as your first child is born, everything changes, and they become the highest level of responsibility in life. Suddenly, you and your spouse become responsible for this helpless young baby. Feeding, caring, protecting, and providing are your new goals and greatest charges. 

As your young child grows, the way you take care of him or her changes depending on the season of life. Naturally it is a huge responsibility and should not be taken lightly. From the day that he or she comes into the world, until they reach adulthood and beyond, your maturity and wisdom must be there to guide them.

As a parent, there are many ways that you can take care of your children. However, have you included the area of finance as you seek to protect them? When it comes to this aspect of your care for them, there are many steps you can take to help protect your child’s financial future. Here are six that can make a significant difference:

• Will:  It is vital you have a legal will established that determines what happens to your assets when you and your spouse pass away. You can spell out the division of assets, and how they will be distributed. If you do not have a will, your exact wishes might not be followed. In that case, your assets will be allocated to your heirs based on your state’s laws. What are the chances that these default laws will line up with your wishes? Protect your kids and your wishes – make a will. And make sure you keep it updated as life changes, i.e. new children or grandchildren. 

• Trust: Another way to protect your child is to form a trust. Especially with young children, this protects them and makes sure that the assets you leave behind are handled properly until they come of age. From a tax perspective, there are also ways you can build in some real, measurable benefits.

• Life Insurance: We have car insurance, homeowners or renter’s insurance, insurance on other objects of high value...but what about your life? What happens if you pass away before your children turn eighteen? As a provider for your children, your income is necessary for their day-to-day expenses. What would they do if you were not there anymore? Protect your children and your spouse with life insurance. And re-evaluate your coverage after life events or once a year.

• Long-Term Disability: While life insurance is very important, we often overlook another type of security needed. What would your family do if you became disabled or ill enough that you could not work and provide for them? Imagine being so ill or injured you could not work for an extended period, and also having to watch your spouse and children suffer because you cannot pay household expenses? 

• Long-Term Care Insurance: Another type of coverage that protects your finances should you become ill enough that you need full-time care in a nursing home is called long-term care insurance. Without this, the cost of long-term care can quickly spend through your assets and savings…leaving your children without an inheritance.

• College Savings: Higher education after high school is obviously critical for children to succeed in today’s world. Some will go to a traditional secular or Bible college, others to vocational and technical school. Many will go on to graduate school. All of these options will increase their earning potential; however, it does not come free. Without your assistance and pre-planning, your children may carry years of heavy debt after they leave college. This could cripple their financial future. Most states offer a college savings plan to their residents, called 529 savings plans. These plans often include tax benefits as well. 

• Teaching about Personal Finance: There is a well -known quote that says, “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.” Think about this in the context of your children and how they will eventually handle money as adults. It is vital you provide education and practical strategies for managing finances. Teach them to budget, the value of saving, and the importance of tithing and giving cheerfully to the Lord. 

The strongest desire of a parent is to see all the needs of their children satisfied: physical, spiritual, and even financial. You can do so by remembering and fulfilling 1Timothy 5:8. A little planning today can ensure their futures are bright, protected, and secure.