Ways to save for your child’s future
It is very easy when your child is born to be sucked into spending all your money on a new pram, state of the art nursery and a stunning wardrobe. But babies aren’t just expensive when they are born.
Oh no….they’ll need funding for MUCH longer than that!
At 30 my mum told me I cost her more than I ever had before as I embarked on a marriage and a new home all in one year!
Saving for your child future so you can support them when they need you to is really important. First cars, university, trips around the world, first home, grandchildren and trouble of some kind are all likely! Cash will undoubtedly be required at times in the future and savings will be most welcome!
Here are my top tips on saving for your child’s future.
1) This may sound a little strange but bear with me.
The first thing you need to do is take a long view of your young child’s life.
Really take some time and think about all the ways you want to support your child from being a tiny baby to being grown. Consider the opportunities you want them to have and the experiences.
Invest in this vision and don’t be blinkered by the immediate and the present. Keep a wide view and then commit to long term support.
A picture in your mind of the future is very important. By spending time daydreaming or envisioning their future you are very usefully opening your mind to their whole life and investing in it financially will then make much more sense.
2) Consider investing in a Junior ISA. With a Junior Isa children are offered assistance to build up a nest egg in readiness for their adult lives. Like an adult ISA, there is no capital gains tax or tax to pay on any money invested.
Sippdeal offer a Junior Isa alongside the Sippdeal online share dealing and SIPP pension options so you can take care of all your longer term financial considerations at the same time.
Don’t be fazed by a Junior Isa. Over at Sippdeal there really are just a few simple steps to follow, and the whole set up takes just a few minutes Once the Junior ISA is up and running, you can invest lump sum amounts or set up a monthly Direct debit that you can change at any time. You can save up to £3,720 each tax year.
3) Another way to invest for your child’s future is through their own savings account, It is really useful to encourage them to start saving young. You can choose whether to have easy access accounts where money can be withdrawn instantly and paid in as and when or regular saving s accounts where money is deposited monthly and not taken out quite so easily. Whichever way you choose it is great for kids to see their money grow and get into good habits early on.
There is an excellent book called Money Smarter – a family guide that give lots of little tips and exercises that you can do as a family to help your children understand money, budgeting and saving better. It will also give you lots of ideas of ways to save for your child’s future.
It’s really important to help your children understand there is joy and satisfaction to be had from reaching financial goals and paying your way in life and that delaying gratification is worth it.
Does all this seem every grown up and far away as you look at your baby or toddler?
I’m sure it does. Butconsider this, you invest in your child’s health and education every time you read to them or give them a carrot stick! Investing in their financial future is just as important and the sooner you start the healthier the investment will be.
I do hope you have found this post on Ways to save for your child’s future to be useful I have more money saving posts here