As a parent, you want to provide for your child in every way you can. You want to give your children the best start in life and help them out until they can stand on their own two feet.
However, it can be hard to know when to stop and draw the line and when to let your child start providing for themselves.
What do I have to save for?
There are major life events that parents want to help their child out with, such as buying their first car, getting them off to university and perhaps the biggest of them all – their wedding day.
It can be hard trying to figure out how much all these things will add up to. According to Money, it is estimated that parents need to save a staggering £259, 000 to cover the costs and expenses of having a child and helping them out throughout their life. These amounts become even more daunting, when you have or want more than one child.
However, there’s other things to take into consideration, like if your child ends up in debt, or if they need a little bit of extra money while at university. They may want to join the gym or get a new mobile phone.
They may consider new trainers necessary and branded clothes more their style. All these can bring that amount even higher. It can be hard to cover every single expense your child requires, so it’s better to focus on one thing, so you can have one set total to aim for.
Choose one major life event to save for
Choosing one thing to save for, instead of five, can be extremely beneficial to both you and your child. For one, it means you have a goal and an end point, so you do not end up getting into financial troubles because you’re trying to balance everything.
If you pick a house deposit to save for, stick with it, and put money aside each month for your children’s future in property. You need to work out what will be of most value to your child when they become an adult.
Your children will also benefit from the singular option as they will not expect everything in their life to be paid for by their parents. Lending your child £10 is a lot different to paying their phone contract or gym membership every month.
As your child gets older, they must realise the value of money and how hard you have worked to be where you are, and how hard they will also have to work to receive the same lifestyle. Although you may want to give your child everything, you will help them a lot more in the long run, by teaching them how to save and keep track of money.
Start a savings account
One of the best ways to make sure you know how much money you’re saving up is by starting an account for your child to open when they turn eighteen or need the money.
Use the account to keep track of how much you’ve saved so far and how long you’ve got left to go.