What would you do if several hundred dollars — or even a few thousand — suddenly appeared in your family’s monthly budget? For working parents who are nearing the end of the increasingly expensive child care years, this isn’t a hypothetical question. It’s a very real no-more-child-care windfall!
Think about it. When your child ages up to kindergarten, a large portion, if not all, of your child care costs could disappear, leaving you with a bit more financial freedom. Instead of watching this extra money get swallowed up by everyday expenses, why not make a plan and repurpose it in some new ways?
To help you make the most of this moment, consider this advice from financial experts:
- Fund Your Child’s Future Postsecondary Plans. Saving early isn’t about predicting your child’s exact path — it’s about giving them the freedom to choose. Whether your child attends a traditional college or university, technical school, or pursues a skilled trade, there are great options to get started now.
The Florida Prepaid 529 Plan — which starts at just $29 per month — is an affordable, risk-free way to fund their future. Prepaid Plans allow you to inflation-proof future tuition and housing costs by locking in today’s prices with a fixed monthly payment — guaranteed by the State of Florida. Plans are available in one-year increments to allow families to get started quickly and add future years as their budgets allow. Plus, the plan value can even be used at out-of-state and private schools.
The Florida Investment 529 Plan allows you to choose from simple, intermediate or advanced investment strategies. Investment Plan funds can be used for higher education expenses, including housing and meal plans, books and supplies, as well as computers and equipment — and even a variety of K-12 expenses. - Boost Your Emergency Fund. From unemployment to illness, life can be unpredictable and costly. For adults and kids alike, it only makes sense to have a robust backup plan. Some experts recommend saving enough to cover three to six months, but the key is saving consistently and with purpose.
- Create an Elementary School Budget. Earmark some of the extra money for upcoming needs like school supplies, clothing, field trips and extracurricular activities. As your child grows older, the cost of technology and educational opportunities — think tablets, smartphones and summer camps — grows alongside them. Planning ahead can help you give your child a range of tools and advantages.
So hit pause before you decide the best way to use daycare savings. You have a unique opportunity to redirect these funds to great uses — without feeling additional financial strain.
Since 1988, Florida Prepaid’s goal has been to help make saving for college affordable and attainable for all Florida families. Build your perfect college savings strategy in minutes!
