Saving for your child, how do you start?
Did your parents used to surprise you with a financial backing they had saved up for you?
Now that you are a parent, you would probably like to do the same for your child. But how do you get started? Is it possible for everyone? We get you started!
"I find it difficult to save for my children at the end of the month."
It isn't necessary to put aside a large sum of money every month. It is better to save a small amount each month and reach your goal slowly but surely. So the earlier you start, the better. No one can predict what the interest rates will be in 5 to 10 years from now. But even if we take a very pessimistic rate, did you know that if you save 10 euros a month from the time your child is born until adulthood he or she will have 2,200 euros!
2,200 euros, which is enough to...
- set up their first apartment.
- pay for university tuition fees for 2 years.
- go on a trip with friends to Asia, Latin America, etc.
- buy their first used car
Is a savings account a way of teaching your child the value of money?
You may not have thought of it, but a savings account can also be a fantastic educational tool for teaching your child how to manage money.
There are indeed times (birthdays, Christmas, New Year's, end of school year, etc.) when your child may receive a lot of small gifts of money. But perhaps he or she is dreaming about something on a bigger scale. For example, a weekend at an amusement park, the latest bike or a game console.
If your child is of the appropriate age, he or she can tell grandparents, godfathers and godmothers about this project, and they will no doubt be delighted to contribute a modest amount to their savings account.
Unlike a piggy bank, a savings account for a child is still a simple and safe way to put money aside.
- It's more secure: no one will be able to come and steal your money while you are away.
- More guaranteed: you are sure your child will not use the money to buy useless gadgets. For that, he or she will have pocket money after a certain age. It is important therefore not to confuse saving for your child's future with learning the value of money with his or her pocket money.
An idea for teaching your child to achieve a savings objective
Your child can pick out the toys he or she no longer wants, sell them at a jumble sale and put the money back into his or her savings account.