We all want the best for our children, after all, it’s our job as parents to make sure we put them on a good path for the future. While you don’t need to be rich to raise a happy, healthy family, money still is important and something we need to think about when we’re looking to the future.
Even if you’re very much of the opinion that your kids should work for what they have and not be handed things on a plate, due to factors like economic instability (the recession and Brexit being examples) none of us can be sure of the kind of opportunities our kids will have.
Even if they get a job, work hard and do everything ‘right.’ For this reason, it’s so worth starting a savings account when they’re young and putting away a little money if you can. There are a few ways it could come in really helpful, especially if their earning potential is limited due to factors outside their control. Here are some examples.
A Mortgage Deposit
Our homes are the biggest investments most of us will ever make. There used to be a time where it would be simple, but there have been a number of situations over the past few years that have occurred that’s made getting a mortgage very tricky.
After the recession, lenders have demanded increasingly large deposits, and with so many job sectors having their earnings capped, it’s not always possible for young people to reach these amounts. As a parent, if you’re able to save some money to contribute to this when they reach adulthood then it can set them on a much brighter financial path.
Owning property gives them stability, allows them to put down roots. It ensures they’re not wasting money on rent. Maybe they won’t need it, with a bit of luck it will become more accessible again for young adults to get onto the property ladder but we cant predict that. With some savings put aside, at least you can help them if they need it.
Education is expensive. Depending on where you live and what your household income is, it may be possible for students to apply for loans and grants to get them through their studies and living costs. But it’s not always the case, often you will have to provide for your child while they’re away studying.
This means rent, bills, books and transport costs on top of university fees. It’s always worth it though; whether they study at a New England college or a southern university or even abroad- it will give them skills, experience and qualifications to put them on the best path in adulthood.
They’ll be able to apply for better jobs, reach their career goals and not be held back. But as parents it is something for you to think about early on since it can be very costly.
Driving gives a person so much freedom and independence, something that teens crave. When they reach the age of being able to drive, having some money aside for driving lessons and a car could really help them out.
Sure, they could get a part time job to pay for their fuel and repairs, but if they’re studying full time chances are they won’t be able to earn enough to pay for everything. Driving is a useful skill for anyone to learn, and it can also ease pressures on you when they’re not asking for rides everywhere.
By the time they leave school, move out and reach adulthood they’ll have plenty of driving experience under their belt and their insurance costs will be much cheaper as a result.
Even if you’re able to help with these things, your child will still have to work incredibly hard throughout their life and nothing can take away from that. However, with a little help from you with these kinds of things, you may well give them opportunities they might not have otherwise had.
Are you saving for your child’s future?
PS Hope this was informational ?!
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