How to save for your child’s future

How to save for your childs future. Pink piggy bank surrounded by coins.
Photo by Skitterphoto on Pexels.com

Children grow up fast. Parents and guardians around the world know the feeling of realising that, out of nowhere, their child will be a teenager soon, and that they will begin to be interested in things like college and cars and flying the family nest. The issue is that helping to fund your child’s transition into young adult life isn’t cheap, and if you leave it too late, you could find that there isn’t enough money to go around.

One way to begin saving is with an ISA specially set up for children, whereby the money you pay in belongs to the child and cannot be accessed until they are an adult. Check out this junior investment isa info for more details. Now let’s continue with ways to save for your child’s future, because your little one is going to grow big with big plans to match!

The Used Toy Fund

If your child has accumulated many toys, and if those toys are taking over your house, you can use this as a way to make money and save for their future. Here’s how it works. First, agree with your child that perhaps seven or eight toys is the maximum number your child needs to own. Next, sell all the other toys (you can do this quickly using social media marketplace tools – generally, the buyer will even drive to your house to pick up the goods).

Add to this money each time your child wants a new toy, by selling a toy to make space. Although this sounds like a slow way to make money, you could be looking at replacing all seven or eight toys once per year, creating long-term savings that add up (first cars don’t buy themselves, for example, and the money saved from selling used toys can make a difference).

Ask For Birthday Money

Family and friends may be generous enough to buy birthday presents for your child. However, spending money on things that your child will only pick up once before storing under their bed (never to be seen again) is a waste of money. Instead, encourage your friends and family to make a donation towards your child’s future. Ask for a small amount and pull on their heart strings, saying that the money will go towards things like education. If you don’t ask for the money, you won’t get it. You have to be straightforward.

Your Own Savings

Setting up your own savings account is quick and easy. A mistake that many people make is to convince themselves that they can’t afford to save very much per month, so it won’t be worth it. But this isn’t true.

Even if you can only save a small amount, times that number by twelve for your yearly saving. Now, times that yearly number by eighteen for the eighteen years you will be saving towards your child’s future. That’s not too shabby a number now, is it? Certainly enough for a second hand car, and probably quite a few extras besides!

*This post is a collaborative post.