Finding the little and large ways to save money is a vital skill for any mother to learn. However, it can go beyond making sure that you have enough left over after your groceries or getting the best deal on the essentials.
You should be thinking about the future, as well, and how well you can provide for your child to support their entry into the grown world. Here are a few tips on doing just that.
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Start budgeting your extra
The first thing you want to make sure that you’re aware of what you’re doing with your money, and that you’re putting some of it aside towards your saving goals, both short-term and long-term. Creating a budget will help you do just that, ensuring that you’re putting enough money aside for the essential costs, any optional expenses, and your financial needs. There are different ways to weigh your budget, but a lot of people use the 50/30/20 approach.
Find the right account for it
If you want to make sure that your child’s money is kept safe, then finding the appropriate account to keep it in is vital. This way, you make sure that it doesn’t get mixed up with the household funds. You can get an account at any bank or building society for your child, but there are also options like Junior ISAs, which are tax-free, and some options even involve additional investment with tax-free capital growth. Look at the options near you to find the most reliable account.
Help it grow
If you want to see the money that you save for your child growing to keep up with inflation or even to go beyond it, then putting it in a bank or savings account isn’t enough. You might want to do that with some of the money, but you should consider putting a portion into markets like ETF Trading. It is true there’s an additional risk with investing your money in the trading markets, and that these investments need to be managed to mitigate that risk, but the potential wealth growth is much higher than you’ll see in savings alone. Diversify for the best results.
One personal note: we take all of our kiddos birthday money given
Be ready to react to the market
If you’re keeping your children’s money in savings accounts or in assets you have invested in, you have to keep an eye on the financial news. If there’s a dip in the market you’re investing in, you could potentially lose money, for instance. What’s more, you want to make sure that some of your investment is in bank accounts covered by FSCS to mitigate your losses. As such, you have to keep up with the latest updates to ensure that you’re ready to move your money around when one market starts dipping.
A lot of parents think that funding your child’s way to adulthood is where your responsibility as a parent ends but the simple fact is that if your child has less financial insecurity heading into adult life, they’re at an advantage. Hopefully, the tips above can give that advantage.