Saving for your children

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We all want the best for our children, and providing them with some funds to kickstart their adult life is a great way of preparing them for their financial future. Here, we will be talking about the benefits of saving for your children and how to go about it.

Why save for your children?

There are a number of costs young people face when becoming a young adult. Funding driving lessons and buying their first car, putting a deposit on a house and University fees to name a few.

One study found that over three years in University, students can raise debt of over £50,000! Another study found that learning to drive can amount to around £1,500, and that is before even buying a car.

Saving small amounts each month can help to build a pot of money which your children can use to fund these expenses when the time comes. But how do you do that?

How to save for your children

Setting up a savings account for your child when they are born is a great way of building up some money for when they turn 18. At this credit union, we have a Junior Saver account which you can pay a minimum of £10 into monthly. When you add this up over eighteen years and add the 1.2% dividend we paid in 2019-20, this can amount to over £2,300, which can cover the average cost of £1,500 when learning to drive.

When your children are old enough, you could organise for them to have a piggy bank where they put any excess Birthday or Christmas money, or the odd coin, in order to build their own healthy saving habits.

There are a number of options out there for a range of different accounts. You can even save for your child’s pension! Think about what might be the best option for you, and consider starting to build for your children’s financial future.

  • The information provided in this article is for guidance and educational purposes only. Police Credit Union Ltd. does not offer regulated financial advice. Please seek independent financial advice.

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