MINNEAPOLIS and ST. PAUL, Minn., June 12, 2012 /PRNewswire/ -- This Father's Day, kids across the country will honor their dads with thank-you cards, finger-painted masterpieces and other homemade goodies. The holiday is a great time to celebrate fatherhood, and also presents an opportunity for fathers to reflect on their family's level of financial preparation for their children's futures.
"Raising kids comes with plenty of financial responsibility," said Jim Sathre, Senior Vice President, M&I, a part of BMO Financial Group. "But with some education, planning and preparation, parents can ensure a stable future for the next generation of their family."
Perhaps the most prominent concern for parents is paying for college. As the costs of college continue to rise, so does the stress on parents' pocketbooks. It's never too early to start saving for a college education, and doing so allows parents to take advantage of compounded interest. A 529 Plan for each child is a good way to do this.
A few other things for fathers to consider include disability and life insurance – for both parents. These are vital to have in the event of unforeseen health issues and can be a boon when the unexpected happens. Many companies make these policies available for a small monthly payment.
Furthermore, having a detailed will in place will ensure that assets are distributed correctly and that surviving family members receive funds as designated.
Finally, as kids age, dads should take an active role in their financial education. For instance, parents could give their kids a small allowance and help them to prioritize between spending and saving that money. Fathers should also take the time to engage kids in banking activities to teach them how things like checks and debit cards work.
"M&I salutes fathers everywhere for their sacrifices," added Sathre. "We wish them and their families the best in planning and preparing for their kids' futures."
About BMO Harris Bank
Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 650 branches and approximately 1,350 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank(sm) and M&I® are trade names used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.
SOURCE BMO Harris Bank