How to Balance Investing for Your Future vs. Your Children’s

September 5, 2023

It can be difficult to navigate saving for yourself as well as your children. In this highlight, we discuss how you should approach investing for your children and what order you should prioritize saving for them in.


Next up, we have a question from Caleb. He asks, “How do you overcome the fear of making sure you are providing enough for your children’s future while saving for your own? For context, I am an expectant father, so congrats first of all, that’s exciting. Is it a legitimate fear to ensure that I am setting her up for the future while also providing for my wife? Tonight, it’s such a hard balance to strike.”

Congratulations, Caleb! Being an expectant father is an amazing journey. This is a common struggle, as when you hold your baby for the first time, you want to do everything in your power to provide for them and ensure their future. It’s a natural instinct. However, it can sometimes lead to irrational financial decisions.

Here’s what I’d suggest for a new parent: Focus on the non-monetary aspects of parenting, especially when your kids are young. Teach them well, raise them with love, and provide them with valuable life lessons. Money is important, but life skills and values are equally, if not more, critical.

Instead of worrying excessively about setting up a trust fund or a substantial sum of money for them, concentrate on setting up a solid foundation for your own finances. This not only secures your financial future but also models good financial behavior for your child. Remember, the best gift you can give them is not burdening them with your financial issues when you retire.

Balancing family financial goals can be achieved through Financial Order of Operations, which can be found at moneyguy.com/resources. This will help you prioritize and align your financial journey. Prioritize getting your financial household in order, as it not only benefits you but also sets a great example for your child. As they grow, model good financial behavior for them, so they have a strong foundation in handling money. Teach them the life skills they’ll need to be successful adults. Prioritize saving for their college education once you’ve established your financial footing.

In addition, you can prime the pump for their financial success by matching their investments when they start working. Teach them to manage money responsibly, such as co-investing in their first car purchase. Learning to navigate challenges and scarcity can help them develop essential life skills. Ultimately, your goal should be to equip your child with the ability to lead a successful and productive life. While financial security is important, instilling life skills, values, and work ethics will serve them far better in the long run. Remember that your legacy isn’t just about leaving them a large sum of money, but about preparing them to handle life’s challenges with confidence.



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