Savings

Savings are something we all wished we had, but strangley not something we are taught, well at school anyway.

So, teach your child some good habits and let them see the benefits of putting away for a rainy day and start them off on the right track. There are plenty of benefits to opening a savings account for your child while they are young. Saving a small amount each week or month into a dedicated savings account, soon adds up and this can then be used when your child is older, whether that’s to pay for education or put towards their first house or just to be able to access when needed. Unlike adult savings accounts, there are still some good interest rates that can be found for children’s savings, so if you do save for your child, then make sure it is in an account that has a good interest rate.

There may also be some tax benefits for opening a child friendly bank account, so do look at what is available on the market when you open an account, to make sure you maximise the benefits.

As your child grows older, it is also important to teach them the value of money and the benefits of saving as these are important life skills.

When your child is very young, they may only understand a very basic concept of cash, but when old enough it is important to show the benefits of money being saved into a bank account compared to a piggie bank.

If they learn from an early age that money saved in a bank will grow, then this will hopefully help them develop good habits going forward.

Sources: https://www.moneysavingexpert.com/savings/child-savings-tax-free/

Savings are something we all wished we had, but strangley not something we are taught, well at school anyway.