People often say that having a child is expensive, and this is definitely the case when it comes to your child’s future. University fees seem to be getting more and more expensive all of the time. Plus, even if your child does not go onto further education, you may want to help them establish a business or get their foot on the career ladder. With that being said, read on to discover some tips for saving for your child’s future…
Start as soon as possible – There is only one place to begin, and this is by starting early. If you put money away from the day your child is born – or from when you find out you are pregnant – you will find it a lot easier to save. This is because you will be able to put easier, manageable amounts away. Not only this, but you benefit from the value of compound interest. Your savings account will yield good returns and you won’t need to invest as aggressively.
Invest on a consistent basis – Another tip for saving for your child’s education is to invest consistently. Select a set amount, and make sure you invest this amount every month. You can also increase this amount once a year. This will help you to build up your savings without feeling like it is taking a lot of effort.
Make the most of tax savings – There are a number of different avenues you can go down that will grow tax-deferred or tax-free when they money is being used for college. This includes an Educational Savings Account, 529 College Savings plans, and saving bonds. These are all options to consider.
Consider a loan – If your child is getting ready to move onto the next stage in their life and you do not have the money to assist, you should consider a state employees credit union loan. Of course, this will not be suitable for everyone, and you do need to assess your situation carefully to make sure it is something you can afford. Nevertheless, it is important to think about if you need money now.
Talk to your child about money – Last but not least, the last thing you want to do is spend your life saving for your child’s education only for them to blow the money quicker than you can blink! Make sure you take the time to speak to your child about the value of money and teach them financial management skills that will help them going forward.
If you follow the advice that has been provided, you should be able to effectively and efficiently save for your child’s future. From starting early to taking advantage of tax savings, there are many ways you can give yourself the best chance of accumulating funds to help your child achieve his or her dreams.
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