Save for your child’s future with these top tips
Being a parent often means making difficult decisions, especially regarding money. With school uniforms to buy and all the latest gadgets your kids want, you find yourself having to say no to treats and toys which can leave you seeming like the bad guy.
If you do happen to be struggling financially and have experienced an unexpected expense, like a personal injury for example (see these pre settlement loans for more information), then fear not, as there are ways to better your situation without heavily impacting your savings. The trick is to be prepared. Start saving for your family’s future as soon as possible, even if it is just a small amount a month.
As a parent, there are many methods of saving money for your child, no matter your sitatuion. The following tips will help to ensure they have a lucrative life and start off on the right foot.
The first way to start saving for your child’s future is to assess your cash flow and work out your budget. How can you save if you don’t know what you’re spending? Budgeting comes easier to some than others, but it doesn’t have to be difficult. Find a way that works for you; whether that’s creating online spreadsheets or doing everything on paper. Establish necessary spending and try to work out where you might be able to make some reductions to start saving.
When saving for your child’s future, it’s important to start early. Not only will this mean that you save more over a longer period, but you’ll also get into better spending habits. It will be harder to make cuts on spending when your child is older and has got into the habit of getting regular treats. So, create a plan when they’re little and stick to it.
The easiest way to save for your child’s future is to open a children’s savings account. This is where you only put money for your child’s future and for nothing else – reducing the temptation to take money out for a little something here and there. Most savings accounts have restrictions and only allow the child to access the money at an agreed age.
Learning to save also means learning to be thrifty with money – and make it, where possible. Making a little extra will speed up the savings process and the account will become more lucrative. But what can you sell? Items that no longer benefit your child are good places to start, such as old cots, prams or learning aids. These items can be expensive in retail stores, and many parents will be glad of a second-hand alternative. So, be smart and consider ways to top up the account. You’ll reduce household clutter, too.
While saving for your child’s future is a smart and practical decision, you also need to teach them how to be sensible with money. What’s the point in saving money for them if they’re going to flitter it away? So, as your child develops, teach them the good practices you have learned while saving. They will grow up to be smart, responsible and ready to put their savings towards their future.