New York Parents Need To Know These 5 Financial Tips

Being a parent is one of the most amazing things that you can do, but it can be one of the most stressful things.

Thinking about the financial future of your kids might be one of the furthest things on your mind if your child is still young, but I am here to tell you it comes quickly.

If you plan on your child attending college, you need to start prepping now, and if you want your child to know about checking accounts, investments, 401k, and more, the earliest you start teaching them, the better.

Here are 5 financial tips every parent in New York should know.

5. Start Saving Now For College

If you plan on your child attending college or any form of higher education, you need to start saving now. Even if it is $25 a month into a 529 college plan or savings account. The sooner you start saving the better. Also, apply for scholarships as early as Sophomore year in high school.

4. Get Them A Savings Account Early

As soon as your kids can grasp the concept of money, you should get them their own savings account. They will learn how to deposit, withdraw, and balance to account. Also, they will learn how to manage their money. From depositing birthday money from Grandma to taking money for that toy they must have, using their own savings account will help them learn financial responsibility.

3. Add Them To Your Credit Card

When your kids are old enough, you can get them a credit card in their name attached to your credit card. When you pay the bills on time it will help build up their credit and improve their credit score. Plus it helps them learn early to properly use credit and good spending habits.

Get our free mobile app

2. Set Up A Financial Plan

Sit down with your kids and come up with a financial plan for them. What do they want? Maybe they are saving for a PS5 or a used car. Come up with a plan and budget with them so they can achieve their goal. This again will help build healthy money habits.

1. Check Their Credit Score and credit history

As soon as they get old enough, you should be doing a credit check on your kids. You can make sure there are no fraudulent charges associated with them. Also, you should check their credit score monthly. There are several places like Bank of America that offer free credit score checks. You can also get a free credit report once a year HERE.

You can also check out The Better Money Habits website set up by Bank of America for more money tips.