Family wellness doesn’t just involve looking out for your child’s wellbeing now, but securing their future wellness too. However, everyone certainly knows that times are tough right now, so how do you go about putting money away for a rainy day, without breaking the bank? Luckily, there are many options to choose from when you are considering saving money for your child’s future.
Firstly, are you getting all the child benefit you’re entitled to? If you’re earning less than £50,000 between you, HMRC pays £20.30 per week for an eldest or only child and £13.40 per week for each subsequent child. You’re still eligible for some benefits if you earn over £50,000, but once you hit £60,000 you receive no child benefit at all.
Once you’ve got your benefits sorted, and if your child was born before September 2002 or after 3 January 2011, you might consider starting a Junior ISA for your child. This can help you save of invest up to £3,600 a year, and it’s tax efficient.
Building up a habit of saving is a great idea, especially if you’ve got younger children, as little and often additions to that nest egg will build to great results. Compound interest means that if you invest £10 each week of your child’s life, at an annual rate of three percent, your savings will be worth £11,420 by the time they’re 18.
However, if you find that your savings still aren’t cutting it, ask your family for help. Your parents have sat on 30 years of rising house prices, and may be all too willing to help you out. These days there are many providers who make it easy for family members to contribute to your child’s savings pot.
Just remember to set a target for all of your goals. There are now online investment managers, such as Nutmeg (www.nutmeg.com), who can do all the hard work for you, and you just tell them what you want, such as X amount of money for your child’s future. Look online for more information and see if you can secure your child’s future, today.
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