At the moment your children are still well settled in their family nest. Yet the day will come when they will leave their nest to fly on their own. When that time comes you will certainly want to help them with a good start in life. Why not give them a small financial boost by starting to save straightaway?
Build up a financial reserve
As a parent your main aim is to protect your children and to ensure they lack for nothing, on a daily basis. Rather than focusing on everyday concerns, best to look forward and seek out solutions likely to help your little one take a good start.
Obviously you cannot anticipate everything. But building up a financial reserve can afford peace of mind for you and security for your child who, on the eve of adulthood, will need to find a job, a flat, etc.
The early bird gets the worm
Three out of four parents save for their children, most from the time their child is born. A small deposit each week or, rather, a large annual amount for birthdays? it is you who sets the amount and frequency of your instalments.
How much and how often?
You can opt for a fixed amount or decide to set money aside when you can afford it. In this way you will not need to worry about times when money is short. Mike, the father of Amy who is 7, is preparing for the future of his child. “My wife and I decided to open a savings account for Amy when she was born. Each month we each deposit 100 euros. When she turns 18 our daughter will have a nice nest egg.”
Tip:
You can even open a savings account for your child before they are born! In that way you will have more time to build up an appreciable capital for them. Why not ask your relatives to use this account to offer them a gift for their birth?
Slow and steady wins the race
There’s one rule of thumb when it comes to saving: the sooner you start, the higher the return. This way you’ll build up a healthy amount over the years without having to part with a lot of money in one go.
An example: Kirsty started saving for her son Josh when he was born. “Each month I deposit 50 euros on an account opened in his name. By the time he turns 20 Josh will have 12,000 euros without my having to make any sacrifices. Not to mention the interest!”
Practical solutions
With the automatic savings packages, you are not likely to forget a deposit. You simply set an amount to be deducted each month from your account automatically. You can also ask the other members of your family, for instance grandparents, to help to fund your child’s account with a view to offering them an appreciable amount in the future. In this way when your child goes off to student accommodation or to start their career they will have a good head start!
Moreover the money is accessible at all times, if needed. You, as the parents, remain in control.
What now?
Thanks to our savings packages, you can help your children from their birth, and even before! Would you like to start straightaway? Make an appointment at an ING branch and receive a “Back to School” pack for your child.
