The children born between 2025 and 2039 will be known as Generation Beta, a generation that will grow up fully immersed in technology and facing environmental challenges. As parents, it’s important to take steps now to set your child up for future financial success in a world that is constantly evolving.
One key way to do this is by opening what’s called a 529 plan (after Internal Revenue Code Section 529), even if your child may not attend college. This tax-advantaged plan can be used for various educational expenses, providing a solid financial foundation for your child’s future. Additionally, making a will and updating beneficiaries for important financial accounts, such as life insurance, can ensure your child is financially secure in case of unexpected events.
Increasing or getting life insurance is another important step to take as a parent, especially if you are the primary earner in your family. Teaching your child about money from an early age is also crucial for their financial literacy and success. Studies show that children start forming money habits as early as 7 years old, so it’s never too early to start teaching them about saving, budgeting, and investing.
Investing in your child’s future, such as setting up a custodial IRA for their retirement, can also help secure their financial well-being. By taking these proactive steps now, you can help prepare Generation Beta for the financial challenges they may face in the future.