Having a child is one of the most rewarding experiences in life, but it’s also extremely expensive! Once you add up the cost of food, clothes, toys, transportation and bills, you’re left with an eye-watering amount of money that’s going towards raising your kids, but this doesn’t just stop once they reach the age of 18. Once they reach adulthood, your children will have to deal with staggeringly high university fees, house deposits and other living costs.
If you want to help your child deal with these costs once they become an adult, then saving for their future is extremely important. To give your child a head start in life, here’s how you can start saving.
Open A Junior ISA
Opening a Junior ISA is one of the best ways to save money for your child. You can open a Junior Stocks and Shares ISA, which is an investing account for kids, or a Junior Cash ISA, which is a savings account owned by your child. With a Junior ISA, you manage and deposit money into the account until they turn 18, which is when they gain control of the money.
ISAs are appealing because they allow you to save cash tax-free as long as you stick to the yearly deposit limit. For Junior ISAs, you can save up to £9,000 per year for your child, so you could end up saving a huge amount of money for their future. If you want to save up for things like your child’s higher education or a first house deposit, then getting a Junior ISA can be extremely helpful.
Start Saving Early
Don’t wait until your child is nearing adulthood before you start saving money for their future! Although you may not be thinking of university fees or house deposits when your child is extremely young, it’s best to plan ahead and start saving early since these costs can be very high, and they might increase even more by the time your child reaches their 18th birthday.
Create A Budget
If you’re struggling to set aside money each month for your child’s future, then you could benefit from tracking your expenses and creating a budget. Pay attention to what you’re spending your money on and divide your purchases into categories. By doing this, you’ll find it easier to spot frivolous spending and create a budget to reduce your spending in the ‘unnecessary purchases’ category. Then, you’ll be able to set aside a consistent amount of money for your child’s future.
Sell Old Clothes And Toys
Kids grow up fast, leaving behind tons of old clothes and discarded toys. These items can be pretty expensive, so instead of letting them gather dust in a drawer or attic, make sure you sell all of the old items you don’t need anymore whilst they’re still in good condition. Sites like eBay are great for selling old items quickly and easily.
As a parent, saving for your child’s future is one of the most important things you can do. Start saving early, create a budget and open a savings account to make this process as easy as possible.