Securing your family's financial future depends as much on you saving as it does on teaching them how to save. Teaching your children the value of money and the management of their finances is a lesson that will serve them a lifetime. However, there will also be times when a little financial support from their parents will help them fend for themselves. Here are some ideas to start saving money effectively for your children's financial future.
The sooner you start doing it, the more certain you will have the result. When you decide to become a parent you must take into account that you will have an obvious economic turnaround in which your children can be your best allies. There are many online savings accounts for children in which you can put money from the day of their birth; step by step you make your way. You can make small deposits periodically and add a little more at Christmas and for birthdays.
Instead of giving gifts that quickly go out of style, why not swap out some of your traditional gifts for something more meaningful? For example, money for a hobby like music lessons or sports equipment. You can ask family members to do the same. This also teaches children that they must save to enjoy items or experiences.
The best way to save money for your child's future is not only to increase their savings, but also to teach them how to effectively manage their own money. As soon as your children are old enough, give them a regular paycheck. Plan, budget and save together to achieve your goals.
When your child is old enough, trade the piggy bank for a real bank account or digital budgeting app on their smartphone. Among the interesting children's accounts with advantages we find My Own Account (Banco Mediolanum), an account up to 18 years of age designed so that the youngest understand the value of money and learn to save to achieve their goals, and the Open Young Account (Openbank) , also up to the age of 18, at which time your children will receive a wide range of financial solutions to continue making their money profitable.
This is an important milestone and will help give your child a sense of responsibility for their money. If you're nervous about giving him too much control, you can use an app that lets you track his spending and set limits.
Many schools don't teach children financial literacy, so it's up to you to fill that gap. This includes financial issues such as what interest is, how credit cards work, the importance of a credit check, how to invest in stocks and the fundamentals of having a retirement plan. This knowledge is invaluable for their adult life and gives them an early appreciation of the value of money.
Create a stock portfolio that you can pass down to your children in the future. Involve them in decision making and use it as a way to teach them about investment and return on investment. The stock market is a challenge for anyone and it's great to support your children in learning how it works from an early age.
Use an app to make money management fun. Star Chores helps children understand the value of money by linking it to a task, like cleaning. Otly! allows you to track your spending and savings. It also allows kids to separate their pocket money into different savings pots and see graphs of how their savings grow.
Having too much debt can put you and your family in a vulnerable position, should something happen to you or your income stream. Try not to spend more than you earn and pay off debts, such as credit cards or overdrafts, each month.
This is one of those tasks you never want to think about, but keeping your will up to date is very important as it ensures your children are protected when you are no longer around to support them financially. If you haven't reviewed your will in the past few years, dig it up and make sure it's up to date.
Lastly, it's worth remembering that your kids' attitudes toward money will likely mimic yours. Don't be shy about talking about your finances and how you spend, save, and invest. As your children get older, involve them in decision-making and encourage them to save for their own future. This will help ensure that they enter adulthood with a healthy attitude toward money and that they maintain healthy spending and saving habits.