We are often saving money for a rainy day but what exactly are we saving for? We save mostly because we can’t predict the future. Saving money can help us become financially secure and provide a safety net in case of an emergency. Here are a few things savings can help you with:
- Emergency cushion – This could be any number of things: a new roof for your house, dental expenses or sudden loss of income. You will need money set aside for these emergencies to avoid going into debt to pay for your necessities.
- Retirement – If you intend to retire someday, you will probably need savings and/or investments to take the place of the income you’ll no longer get from your job.
- Average Life Expectancy – With more advances in medicine and public health, people are now living longer and needing more money to get by.
- Education – The costs for private and public education are rising every year and it’s getting tougher to meet these demands.
While these are all great things to save for, where better to invest your money than on your children? We all know children are expensive; and any parent will tell you that the older they get, the more expensive they become. But because they are our pride and joy; our everything, we don’t mind putting away those spare pennies for our children and their future.
Saving for a child today, using somewhere like www.shepherdsfriendly.co.uk is a wonderful gift for their future. Not only can they start their adult lives with some savings in hand, but getting your kids involved early with saving also helps them learn important lessons about money. You can set up an account with a bank or building society on behalf of a child. They can start managing their own account once they’re older.
Here are some of the things that your savings could help your child with:
University: over 50% of our young people go on to university. So whether your young one is 13, 14, 15 or 16, if there is a chance they may need to go to university, the likelihood is you’re going to need to save for it.
Buying a house: Starting out can be really hard. If you could, wouldn’t you want to give your child a head start to get on to the property ladder?
Wedding Day: 1 in 10 couples pays for the wedding entirely on their own. Parents of the bride and groom collectively contribute about £19,000 to the wedding, or about two-thirds of the total cost. Avoid having a shock when your daughter tells you how much her wedding dress will cost and know that you have money put away for this occasion. Your savings could contribute towards your child’s big day and help your bank balance remain stable.
Setting up a business: An increasing number of communities have started to make it easier for young entrepreneurs to make money. If your child has a bright idea and you believe in them, why not invest in their business and help them get their feet if the ground?
You can check if you are saving enough by checking this infographic here: https://www.shepherdsfriendly.co.uk/your-resource-centre/how-to-work-out-if-youre-saving-enough-for-your-childs-future
It can mean some extra budgeting and sacrifices here and there, but saving for the future can be such a great thing for all. Is there anything else that you would add to the list?
*this is a collaborative post