If you have children, then you will have probably spent time thinking about how they will support themselves when they are older. House prices are rising, as is the cost of living, so it’s natural to think about saving for their future. Here are just a few ideas which will help you ensure that they have a little less to worry about when they grow up!
Take them to open a bank account or junior ISA
Whilst for an adult this is an extremely mundane task, for a child it is a different and exciting trip do something grown up! Most banks will make a big fuss of children when they are setting up a bank account, and often have freebies to give them too!
A junior ISA is tax-efficient and enables you to save up to £4,368 per year per child. By opening a bank account for them, it means that they can save their pennies and birthday money, and you can periodically top it up with a little cash injection when you can.
Once your child has their bank account them, you can encourage them to save as an when they can – whether it be Christmas money, coins from the tooth fairy or even pennies that they’ve found down the side of the sofa!
Trade in their piggy bank for a clear jar
Whilst piggy banks are traditional and money tins are common gifts, it’s actually much better if your kids save up their pennies in a clear jar. By using a clear jar, your children can watch their money “grow” as they fill the jar from top to bottom! Once they’ve filled up their jar, you can then take them to the bank to drop it all off in one of the big coin counters!
Even better, a jar doesn’t need to be anything fancy – just use an old mason jar or clear plastic tub that you have unused in your kitchen cupboards.
Start giving your child pocket money
Whilst many parents nowadays shy away from the idea of pocket money, and prefer to treat their kids as and when, it can be a great way to help kids learn about the value of money and saving for themselves.
Even just a pound a week gives your son or daughter a decision to make; do I spend this on sweets now, or do I keep this one for next week and get a magazine? For the first couple of weeks they’ll likely give into the instant gratification of the sweet aisle, but after a few weeks they’ll begin to understand that if they want something a little bigger and better then they’ll have to have a little patience.
One important thing to remember though is that it is worth pairing pocket money with giving them small chores or tasks around the house. This way they are “earning” their pocket money, rather than just being given money for free – another valuable life lesson!