disclaimer: this is a collaborative, guest post
Any child will undoubtedly have a dramatic impact upon your finances, spending habits, and budgets – it’s part of their very nature. As soon as you start having a family, or even before if you’re super organised, it’s important that you start planning and saving for the future.
It may seem daunting, but the earlier in your little ones’ lives you start planning and saving, the easier it will become.
I’ve always been quite good at saving and planning for the future, but now my children are starting to get older (where does the time go?), I’m really conscious of the fact that maybe I should be doing more.
I recently stumbled across a video from Mrs Moneypenny (she’s on Channel 4’s Superscrimpers if you didn’t know) and found that there were some great bits of advice on how I can plan and save more for my children’s futures.
If, like me, you’re looking for some extra help, here is some of Mrs Moneypenny’s money wisdom that should set you on your way:
It’s never too early to start saving, especially when it comes to your child’s future. Open savings accounts and start saving for school, university, trips away, anything at all that they might need in the future. If your budget is already tight, you only have to save small amounts each month – it all adds up, especially over the years.
If you’re struggling to find space in your income to accommodate saving anything for your children, it’s well worth looking at your spending and working out where you can make savings – believe me, you’ll find plenty. Another bit of advice I took from Mrs Moneypenny was that it can be hugely beneficial to buy yourself a notebook and write every single penny that you spend down.
That £2 you spend on a coffee every other day – put £2 in your child’s savings account instead. Instead of treating yourself to that amazing new dress, split the cost amongst your children’s savings accounts. You wouldn’t believe how much all the small amounts add up!
…Think Even Further Ahead…
When your little ones are still learning, playing, and growing, it’s hard to think that they will ever be of the age where they need a pension. The fact is, they will. And it will come around sooner than you think.
Starting a pension for your child now will benefit them hugely in years to come. What’s more, if you open a pension for them now, the government will add money to it as well. And it doesn’t have to cost the earth – you can add anything from a few pounds a year, up to the maximum of £2,800 a year, or anything in between. Remember, every penny counts!
…And Further Still…
No one likes to think about it, but the fact of the matter is that none of us will be around forever. Whilst it may seem like a negative thing to do, it’s so important for your children’s futures that you carefully plan for when the unthinkable happens and you’re no longer around to support them.
According to Mrs Moneypenny, 60% of people don’t make a will. This can cause huge levels of stress for your loved ones and can even mean that your children won’t necessarily get what they are entitled to.
Wills can be cheap and simple to make, it’s really worth considering investing in one so that you can rest assured that your children’s financial futures are secure for years, even decades, to come.