Although your children might still be very young, time with them seems to pass quickly. It may feel like no time has passed, yet soon they will reach their next birthdays, milestones, and, eventually, adulthood. Putting money aside for your child, no matter how small an amount, can help them to make a good start in independent living. In addition to this, the earlier you start a savings account, the more time it will have to accrue interest on top of the amounts that you deposit.
Education
While your child’s mandatory schooling years may not come at a cost, higher education usually involves student loans, or upfront payments, unless your child is eligible for a scholarship. Something like a master's degree in speech language pathology could possibly help your child to advance in their career, but may not be something they would consider without a form of financial backing. Putting money away each week or month, even when they are a baby, can help to contribute towards tuition fees, as well as any other materials they might need to complete their course. Even if your child doesn’t want to gain a higher education, there may be other types of education they wish to pursue, or even tools they might need to gain employment in a certain career.
First Car
When your child reaches a certain age, they may want some level of independence while still living within the family home. Being able to pay for driver’s education, as well as a cheap first car, may be difficult to achieve, especially if your child has many school commitments that prevent them from taking on more hours at a part-time job. Lessons could be taken over an extended period of time, or in a single, intensive course. Having some money put aside can help your child to gain this extra freedom. Of course, they will still have to find the money for gas for the car, but at least you can rest assured that you have helped them along the way.
First Home
Your child buying their very first home may be decades away, but that doesn’t mean it is something that shouldn’t be thought about. The down payment for a home can vary, depending on where you live, as well as the average house price at the time, and even due to the income you have. This can be very difficult for anyone, so you may want to try to ease the burden on your child as much as possible. If they have even a percentage of the money towards the down payment of their home, this can cut down on the length of time it will take to save up for the rest of the amount.
Putting money aside during the early years doesn’t mean your child needs to go without in the present. By figuring out how much you can feasibly put aside each month, a little nest egg can be built up over the years which will make your child’s transition to adulthood that little bit easier.
