All parents want for their kids is to be happy, safe and financially stable in their lifetime. We can provide them with as many joyful moments to make them happy, we can provide them with love and a home to keep them safe, but how can we keep them finally secure as the years go by?
As a working parent, all you can think about are the opportunities you wish to provide to your children.
It can be quite daunting to think about the limited options they may have if they’re financially strained. Perhaps it’s to travel the world, buy their first car or put it towards a house deposit, whatever it is, there’s no denying that setting them up from a young age can really change their life experiences. So what are some of the ways you can do that? Let’s explore.
1. Put aside a small amount weekly into a savings account.
Did you know that if you put aside even just $10 a week from the day your child is born until their 18th birthday, they will have accumulated approximately $9,360. This figure doesn’t even include any birthday money they may receive from friends or family members, the perfect amount for a new car!
2. Charge them rent when they get a job, then put that money into a savings account.
This smart tactic not only helps your child save without even realising it, but it allows them to learn hard work and discipline. Agree on a weekly figure and each time your child pays you “rent”, place it into a savings account that can gain interest over time. Remember don’t tell them or else it ruins the fun surprise!
3. Match whatever they save, as an incentive
If you have some extra cash laying around the house, then a fun way to help your child save is to match their own savings. Obviously this might not be possible with higher figures, but if they give you $2 then you can give them another $2. If they give you $20 then you can give them another $20 and you’ll see how quickly it’ll add up.
4. Invest in ETF
Investing your money can seem like a daunting process, but when you’re investing for your child, you have time on your side. Which means, invest the amount you’re comfortable with and let it sit there until your child is an adult. They say the earlier you start, the less you have to save. If you’re wondering where to start, this guide has everything you need to know.
5. Pay them for chores, but take a small “tax” cut, then place that tax into a savings account.
Similar to point #2, paying your children for chores but taking a small “tax” cut educates them on the tax system, prepares them for adulthood but also helps them save! Whatever cut you take, place it into a high interest savings account and don’t touch it until they’re old enough to receive the gift. You can compare different accounts to find which is most suitable for your lifestyle here.
Remember as time goes on you might think of other fun ways to help set up your child for the future. Be creative and be open with them. More importantly, the best way to ensure they have a stable financial future is to make sure they’re educated and spend their money wisely.