When you became a parent, the way you looked at finances might have changed a bit. All of a sudden, it was not just you and your partner that had to be considered. Fortress Investments owner Wes Edens has built a reputation for successful investing over the years. In fact, over the last year he has offered free financial advice to all the players on the Milwaukee Bucks basketball team in order to help them avoid the financial pitfalls that so many players fall prey to. Here are a few key pieces of investment advice for parents and families that want to ensure a bright future for themselves and their children:
The costs of higher education are rising. Setting up a fund to help pay for college expenses can ensure that your child gets to go to the school of their choice and that they have as little student loan debt as possible.
Investing extra income can help add to the financial security of your family later on. A diverse investment portfolio can help you build a lot of wealth over time at a risk level with which you are comfortable.
The lower your level of debt the better as far as investing goes. Pay off your higher interest debt first and then pay off the rest. This can save you a lot of money over time.
Start a bank account for your child
The sooner you start teaching children how to manage their finances, the better the grasp they will have when they are older. Many banks offer savings and/or checking accounts free to children, with a minimum opening balance that is as low as $10. Some banks even have special programs that offer a small reward as children reach different levels of savings.
Create a budget
A budget can help you keep better track of your ingoing and outgoing expenses, even when you are really busy. Seeing your monthly budget on paper can also help give you ideas of where you can cut expenses.
Discuss finances with an expert
Getting expert advice can help make sure that you are making the best financial decisions to meet your long-term goals for you and your family. If you want to ensure that you are leaving something behind for those you care about the most, it is highly advisable to seek the advice of an expert.