3 Ways to Save for Your Children’s Future
Did you know that a child will cost its parents around $22,000 every year from birth until they are 18? This is, of course, an average, and it takes into account all kinds of different costs including housing, food, health care, transport, vacations, and hobbies. However, this figure doesn’t include any savings you might want to have for your child’s future, and when you think about this, it is an important figure to know about. After all, having a saving’s pot to help your child start their adult lives in the best possible way is something many parents are keen to do.
If the cost of doing this seems as though it is an impossible extra, there is no need to worry. There are many different ways to save for your child’s future; read on to discover some of them.Â
Create a Savings Account
Before you can start saving money for your child, you are going to need a good place to put it. Leaving cash under your mattress may have worked in the past, but there are now very secure banks, many of which you don’t ever even have to visit because you can do all your banking online, and this is a much better idea to keep your child’s money safe until they need it for college, or a down payment on a house after speaking with the experts at Azembel.com.
If you set up an automatic payment every month, you will be able to save money without even having to think about it, and the sooner you start, the more you can save. If you don’t want to be tempted to use that money before you can give it to your child, you should find an account that can’t be opened for a set amount of time, or that comes with penalties if you withdraw money too early.Â
Sell as They GrowÂ
You might not have any ‘spare money’ to put into a savings account right now, and if that’s the case you’re certainly not alone. Many people have just the right amount of money they need and no more, which makes saving hard. However, it does not mean it is impossible.Â
If you sell your child’s clothes, books, and toys as they grow out of them, and put the money you make into a special savings account as mentioned above, this is a great way to gift them saved money once they turn 18 or 21, and it won’t leave you out of pocket in any way. It will also help to clear your home of clutter, so there really is no downside to this idea.Â
Teach Good Financial SenseÂ
Saving money and giving that money to your child when they are old enough and need it for something important is a wonderful thing for a parent to do. What’s even more wonderful is to teach that child good financial sense so that they understand more about saving money and don’t necessarily go out and spend the whole lot all at once on frivolous items.Â
If you can help them as they grow and teach them why saving is good and how not to get into debt, you will be doing them a huge service, and even if you can’t save money for them you will still be giving them a very important and lifelong gift.
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