Why It is A Good Idea To Make A Savings Account For Your Children

Looking after children is expensive and starting another savings account might be the last thing on your mind, especially if you are on a low income. However, saving money for your child’s future might be easier than you think. Putting a small amount of money into a savings account each month will grow into a large pot of money over time. Starting a children’s savings account can also teach your kids the value of money and help them develop good spending habits. Here are some of the top reasons why it is a good idea to make a savings account for your children:

You will find it easier to save

Starting a separate savings account for your children is one of the easiest ways to save for their future. You can arrange for a sum of money to be automatically deposited into the account each month. You probably will not even notice a small deduction in your salary each month and the saving account with build steadily over time. For example, if you put £20 into a savings account every month, then this will grow to £2,400 in 10 years. If you receive child benefit, then you could put this straight into a savings account for your children. This blog post from Growing Power states that “parents who are eligible receive £84.20 a month in child benefit.” You could put all or part of this money towards building a healthy savings account for your children.

You can teach your child to be financially responsible

Starting a savings account for your children can be a great way to teach your kids about the value of money. You can use a savings account to educate your children on the importance of being financially responsible and adopting healthy spending habits. If your child wants money to pay for a large purchase like a new phone or an expensive videogame, then encourage them to save until they can afford it.

If your child is 16 or over, then you should encourage them to get a part-time job and contribute to growing their savings account. Your child will get a sense of pride and achievement from seeing their savings account grow each month. According to this article by polarcredit.co.uk, kids who are not taught about money are more likely to have a destructive relationship with money and experience issues like debt and financial dependency. Starting a children’s saving account is an excellent way to teach your child how to be financially responsible.

You can support your child financially

One of the biggest advantages of starting a savings account for your children is that you will have money set aside to support them in later life. This money could be used to pay for University fees or to help your child purchase their first home. Money for your child’s saving account could also be used to treat them to things like new clothes or fun family holidays.

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