How can lesbian moms help themselves help their kids?
Must lesbian moms choose between saving for retirement or putting their kids through school or between putting their kids through school and not having sex? No! Continue reading, so you don’t quit sex.
Note: This is a sponsored article. This means we received payment at no cost to you to write this article. That said, we only recommend products that we use or have thoroughly vetted and would recommend to our moms even though ours aren’t lesbian moms. As always, all opinions are our own.
How can lesbian moms have it all?
Are you ready to quit sex for a year? When your kids are in college, you may choose to. Why? U-Nest found that 72% of queer parents and 61% of straight parents said they’d be willing to give up sex for an entire year in exchange for a year of free tuition.
Those are some drastic measures. Fortunately, you don’t need to take them. Don’t believe us? Let’s talk.
Is it important that your kid goes to college?
Probably, yes, if you’re like most parents. Especially, yes, if you’re like most LGBTQ parents. Eighty-two percent of LGBTQ parents believe saving for their children’s college education will increase their child’s chances for success.
Our community knows as well as any that “education is the great equalizer,” as Horace Mann said. Education means freedom.
Education is equality.
All this is true, but college isn’t free. In fact, it’s quite expensive and getting more expensive every year. It’s so expensive that most families now, let alone students, can’t pay for college out-of-pocket.
So, most families turn to financing and LGBTQ moms are more inclined than nearly any other group to take out a loan for education. Prudential’s 2018 Financial Wellness Census shows that financing major purchases, such as a college education, is a top priority for lesbian moms.
A good education is important, and a little help can go a long way. You could borrow the money, although, too much debt is detrimental, especially if you’re sacrificing your future for your kid’s future.
Did you know you don’t have to sacrifice your future for your kid’s?
Even if you’re not a tiger mom, you may risk being the sacrificial lamb for your kid’s success.
U-Nest also found that parents prioritize saving for their children over saving for their own retirement, paying off their mortgage, taking a vacation or paying off their own student loans.
That’s noble and all when you’re in your 20s, 30s and even 40s, but how will you feel when you’re in your 70s? 80s? or 90s?!
You’ll need someone to care for you and the more someone else has to pay for your care, the less they may care about giving you the care you want.
Therefore, you may have to leave your home because the in-home care you’d prefer is too expensive. You might be forced into a nursing home you don’t like because you can’t afford the one you do. You might have to go back into the closet to get the care you need because the nursing home you can afford isn’t LGBTQ-friendly.
The good news is with the right plan and tools, you don’t have to sacrifice yourself any more than you already have for your kid.
Are you properly planning to put your child through college?
Did you know that nearly 40% of parents aren’t saving anything for their kids’ education?
Nothing. Nada. Zilch!
We get it! Kids are expensive. You wouldn’t believe how much we cost, and we can’t forget because our parents won’t stop telling us.
Plus, saving for college seems so far away until it’s too late. Then, well, it’s almost but not totally too late.
The best college savings plans have two saving strategies, saving early and saving often. But too often families wait till too long to start putting money away.
So, whether your kid’s still a speck of stardust floating in the universe, being baked (not the college kind but the gestational kind) as you’re reading this or is a walking, talking human being – start saving today.
Then, put a little more toward their college savings regularly. Most people who save for college, save a little bit of each paycheck.
If you can save $5 a paycheck without sacrificing your future, do it. If you can save $15 a paycheck, do it. If you can save $25, do it. If you can save more, do it.
The more you can save more consistently, the better your college savings plan. But college savings isn’t just strategy. It’s about using the right tools, too.
Did you know there are tools to save for college?
If you didn’t know about 529 College Savings Plans, you’re in the majority. Only about 10% of queer parents who are saving for their kid’s education are using a tax-free 529 College Savings Plan, according to U-Nest. The majority are using a standard checking or savings account with interest rates so low those savings aren’t growing.
And that’s a shame because 529 College Savings Plans are awesome. Here’s why.
- 529 College Savings Plans are state-sponsored plans designed specifically to pay for school, and the benefits are generous. The maximum annual 529 College Savings Plan contribution limit for 2019 is $15,000.
Investments in a 529 College Savings Plan grow tax-free at both the federal and state levels. However, contributions aren’t tax-deductible.
Your friends and family can contribute to your child’s 529 plan. Keep in mind though, that 529 College Savings Plans do affect a student’s qualification for financial aids. Another FYI is that the gift tax may apply to contributions that exceed $15,000 per donor per recipient in a given year.
The flexibility of 529 College Savings Plans is that they can be transferred to another beneficiary if the original beneficiary – your kid you originally had in mind – doesn’t use any or all the money in the plan. That means you can transfer the leftover money to other children, grandchildren or even use the money yourself to further your own education.
So, no matter what, someone’s getting smarter.
So, what do you do?
If you’re anything like us, you like to keep things simple. If this all sounds too hard, we have even better news.
U-Nest is the first and currently, the only mobile app that helps all families, gay dads and lesbian moms, build, save and optimize a 529 College Savings Plan for their families.
In five minutes (1, 2, 3, 4, 5 minutes), you can set up a 529 College Savings Plan through U-Nest, set your recurring monthly contribution we mentioned above, easily adjust contributions over time and track your progress.
Yes, you can do all this from your phone, and there’s more.
U-Nest’s financial experts will optimize your plan to ensure your money’s invested in the smartest way based on the plans available to you (based on your state of residence), your child’s age and your recurring contribution amount all for only $3 a month.
That’s super cheap!
So, what are you waiting for? Your kids and your future self will thank you.