Saving for you children’s future is on every parent’s mind. Given it can be a long way away, many parents can defer their children’s savings to a later time. This is a huge mistake and can lead to an under-funded savings. Below are a few tips and tricks to help save for your children’s future.
Start as early as you can: Even its $25 a month, start saving when the baby is born. It will grow into a substantial investment over your child’s life, and it will get you in the habit of saving for your children.
Save every month: Never skip a month and set aside a specific amount each and every month. I promise after a while, you will never notice it and it will become like a “fixed expense”.
Start a 529 savings account: One huge benefit of saving for your children’s education is 529 college savings plans or education savings accounts. The money has to be used for education purposes, but the funds grow at a tax-deferred or sometimes a tax free rate. This is a huge advantage and will really help your money grow over time.
Open a savings account in your child’s name: To help your child learn how to save, you should open up a savings account in your child’s name. This will also help him or her with future expenses as he or she grows up.
Teach your child personal finance: This is one of the most important things you can do to help your child’s financial future. Learning personal finance at a young age is critical and will impact their future tremendously. If they can learn about how money works and how saving is important, it could save them from financial disaster in the future! This will also show them how hard their parents work and maybe they will even appreciate you for it.
All parents want their children to succeed in life. One way to help them is to help them succeed financially and help them financially prepare for their future. I have found that parents that teach their children at a young age are much better at dealing with their own personal finances as well.
If anyone has any real-world examples, I would love to hear some of your personal stories in the comment’s box below. Please feel free to share any personal finance story about yourself or your children.