Start a Savings Plan Before Your Child is One
I didn't come from money nor was educated about investing growing up. It was about working really hard, finding a good stable job and saving until you retire. Jobs like becoming a dentist, pharmacist, banker, engineer, and doctor were some of the job titles one would expect as an Asian-American. Fun fact: my first job out of college was an Industrial Engineer at Boeing.
With the dollar weakening, inflation increasing and everything becoming more expensive, it's important to find ways for your hard-earned money to grow with you over time. As you know, I now have an 8-month-old (time is flying). Her future is in my hands. One thing for sure is COLLEGE is expensive. The average cost appears to be $194,711 to go to the University of Washington according to the Wealthfront college calculator. Although I believe in college, I don't think it's an absolute MUST for everyone. It's a safe backup plan, but pretty sure some of my entrepreneur DNA will rub off of me and onto her.
I believe having a strong financial foundation is critical to any happy marriage and success for the future. Last year, I started putting in $100/month into a 529 plan and it's grown nicely to 13.9%. I'm not a financial guru but 13.9% is better than 0% in your bank. So far, I've put in $1,800 and returned $1,926 — it's not major yet but the compounded interest will kick in over time. Like a retirement account, a 529 plan has tax advantages that help you keep more of your savings. That means you could cover up to 16% more of those educational expenses than with a traditional investment account.
If you want to give it a shot, you can use my referral link and you’ll get your first $15,000 managed free. You don't need to use Wealthfront, but definitely, use something to get the ball rolling, you'll thank me later. I'm just a fan of Wealthfront, I got burned using Advisors in the past. Comment below if you have any questions and I'll try my best to answer them. https://wlth.fr/2k4aeyk