We all want to save as much money as we can, spend on the things we deem important as well as setting up a bright future for ourselves, and maybe our children. Anyone with kids can tell you that starting a family isn’t just a personal choice, but a financial one as well. Whether it's buying tons of nappies in those early years, taking your child or children to extracurricular activities, or paying for their schooling, providing for our children is big reason why we try to save. We want to provide for our kids to give them the best possible chance at success, and the reality of it is, enriching our children’s lives does cost money. The Daily Mirror did some research and found out that raising a child until the age of 11 costs on average £60,000.
While we can never put a monetary value on our children, TWiCE understands the reality of it is that a lot of what we want to provide can put a bit of a squeeze on our pay cheque. So how can we strike right balance between spending and saving?
A big part of it comes down to what you think is a priority for your child, and what they like to do. Everyone values things differently, some parents might prioritise paying for schooling while others might place their child’s hobbies as a priority, and others might think setting up a nest egg is the best thing to do. Just like your bills, debts, investments and so on, finding what you value as most important for your child and what they care about, is half the challenge.
As with any other expense, planning ahead is always the best way forward. Doing a bit of research, finding out how much things might cost in advance can help you prepare as best you can. Setting up a separate fund just like any other savings account, can help you make sure to put money aside. Whether its paying for schooling, or a nest egg, having it clearly defined in a different spot makes sure that you know you’re putting something away in your family’s best interests. Different accounts might be more suitable depending on what your savings goal is, if it’s a general fund for whenever an expense comes up, say school fees or extra-curricular activities, having an instant-access account can be a good idea. If it's more of a long term saving that you are looking towards, a regular-savings account lets you put money in each month and accrue a decent amount of interest over the course of several years.
TWiCE understands everyone is different in how and when they can prepare and help their kids as they learn and grow. That’s why if you’re interested in learning a bit more about how you can financially set yourself and your children up for success, it might be worth checking out some of the workshops we do.
- Tom L
Disclaimer: The above information does not replace financial advice. Please ensure you seek independent financial advice before making any decisions regarding your finances. We also recommend that you carry out your own research to ensure that this is right for your own unique circumstances. Please note that we sometimes link to other websites but we cannot be held responsible for their content.