I can’t believe that my little one is four already – doesn’t time fly when you are having fun! It seems only a matter of minutes ago that she was born, and now she’s already turning into a proper little human. In no time at all she’ll be flying the nest, maybe going to university, and starting a family of her own – it’s scary!
With children growing up so quickly, it’s so important that you think about their financial futures sooner rather than later.
Whether it’s to cover the cost of driving lessons, their first car, university fees, or even their first home, saving for their future and teaching them good financial habits now, will give your little ones a head start. Oh, what a wonderful gift to give!
Save for their future
When you have a child it can be an incredibly expensive time and you might find that you don’t have too much money to save. This is why parents often put off saving for things such as university, driving lessons and all the expenses that are sure to come as your child grows.
From the moment they are born, or even before, it’s really good to get in the habit of putting money aside each month for your child’s future. It doesn’t have to be a huge amount, every penny counts and it will all build up over the years.
A friend of mine saved every 5p she acquired from the day her daughter was born. By the time she reached the age of 18, there was enough money in her 5p savings account to buy her a car!
There are a wealth of savings accounts, trust funds, bonds and share plans that are specifically designed to enable you to save for your little one. It’s worth having a read around and getting as much advice as you can when deciding which will be the best option for you.
Build their credit
It may seem bizarre, but it’s important to start building your child’s credit rating nice and early to set them in good stead for the future. Obviously, I don’t mean when they’re five or six, but when they reach their mid teens, it’s definitely time to start teaching them about their credit rating and the impact it can have on their opportunities in the future. You can find plenty of information about credit ratings here:https://www.creditexpert.co.uk/advice/credit-rating.
A good place to start building some positive credit for them is by setting up their mobile phone contract in their own name and having the monthly payment come out of their own bank account.
Teach them good financial habits
It’s never too early to start teaching your little one some good financial habits. From teaching them the value of money to the importance of saving, the sooner you begin, the better.
When it comes to pocket money, however much you decide to give your child, it presents a great opportunity to teach them valuable lessons about saving. A lot of my friends encourage their children to split their pocket money in three ways – 1/3 for spending now, 1/3 for saving for something they want to buy in the future and 1/3 to give to charity. This is definitely something I’ll be trying with my own little one as soon as she is old enough for pocket money.
Thanks to Experian Credit Expert for this guest post. For details of how I work with brands, see my Work With Me page.