The Big Purchases In Your Child’s Life You Need To Save For Now
One of the rites of passage for any child, they shouldn’t be denied from having a car, but it’s one of those major expenses now that some view as irrelevant. Because there is a lot more public transport available, and, depending on where you live, there may not be a need for driving at all. But, naturally, as your child gets older, and their friends begin driving lessons, and start to find their feet on the road, and the freedom that comes with it, your child is going to be feeling a bit left behind. So, it’s an important thing to start saving up for, but also, it helps you later in life. Driving is arguably harder now than it was 20 years ago, especially as there are more cars on the road, but it is one of those necessities, especially if there’s an emergency.
There may be a point where your child begins to think about their education beyond school, and so, naturally, college comes to mind. Saving up for a college fund is always very difficult, and there has been plenty of statistics about how difficult it can be to pay off debt, which is why it is smarter for you to start saving now. There are some approaches to help you with this saving, such as a 529 college savings account, which lets parents invest tax-free money for the purpose of tuition. If your child decides to not go into education after all, then they’ve got a chunk of money saved which will go towards another essential life purchase…
Their First Home
Getting on the property ladder is far more difficult now, and with the precarious nature of jobs now, even permanent ones, it means that banks are very reticent to lend money to people for a down payment. Some people argue that owning your own home is pointless now, but as far as having a roof over your child’s head, this is more of a priority than anything. So, saving for a down payment now means it is easier for your son or daughter to get a mortgage, because they have the money up front, so they can get onto the property ladder. And, if they choose to, renovate the home and sell it on, known as house flipping, this can act as a suitable money pot for them if they end up in financial trouble.
A Savings Account
Trying to save up money for your child can be a very stressful process all in itself, so you need to start thinking about the most sensible ways to save finances for children, and this can include a high-interest savings account. There are plenty of options for you to look at, but you do need to do your research. Depending on where you live in the world, there are certain savings accounts that you can’t access, but you can set up a direct payment to go into that account every month. This means you may be struggling from time to time, but the money will accrue. No matter how old or young your child is, this is always the perfect place to start. And if you don’t have a savings account for them, get one set up, because that little bit of money that can go in every month and over their life.
In addition to these, it’s important to teach your children the value of money, because if you save up and buy these things for your children, they may feel that you are a magic money tree that they can tap for a spare bit of cash now again. Instead, if you instill into them the value of hard work, either by working a Saturday job or by doing odd jobs around the house for payment, this will get them into the right mindset, so they don’t spend frivolously. Saving up for your child can be a major task to undertake, but, in the modern world, we need a secret stash to help us get by.