There is no doubt that saving for your children is important and you should start as early as possible. Some parents’ start later in there child’s life, and others simply aren’t able to at all.
However, regularly saving even small amounts of money is important for many reasons. We save for things that we want to purchase, for emergencies, and for our daily needs. It is also important to have something set aside for any untoward incidents that may occur. Here are some of the reasons why you should keep a savings account for your children.
For education
For most parents, the main reason for keeping a savings account for their children is to pay for college or university. Colleges are expensive, and the fees just keep increasing as time passes. If you start early, you can be sure that you’ll have enough to send your children to college without too many financial worries.
With all the daily expenses, it can be quite difficult to achieve a certain goal in just a few years, which is why it is crucial to start as early as possible. Every penny counts towards your child’s education.
For extracurricular activities
Parents want a well-rounded child who will excel at school and a hobby or a sport. Of course, if you see that your child has potential in something, you would want to hone that skill through lessons. It may be learning an instrument, developing a hobby, or learning a new sport. Enrolling them in classes won’t be cheap and there are materials and equipment that you need to purchase to support your child. Having a savings account set aside for these types of things will be helpful.
For themselves
Sometimes, it helps to have money set aside just so you can teach your children about saving and spending their money. Relatives and friends will be giving your child money for special occasions in their life such as their birthdays and their graduation. Pool the money and keep it in a savings account for them to spend later on. This is especially useful if you’re child has a birthday close to Christmas – encourage them to save any birthday money until later in the year to spread their enjoyment for as long as possible.
Help them purchase something big
If you have a savings account for your children, you will be able to help them purchase something big for themselves in the future. It may be learning to drive and purchasing a car, or their dream home. If they already have funds to start out with, getting more money to purchase the thing that they want won’t be as hard for them. In addition, they will be grateful to you for the help that you give them.
It is a fact that saving is important for everyone for safety and security. When you open a savings account for your children, you should also be the one to teach them about the importance of budgeting and saving money for the future.
