Bringing up children is a costly endeavor. Don’t let anyone lie to you about that part. However, if you can consistently save even a tiny amount for your child, you can establish a good saving habit and a growing nest egg for your family. Here are eight steps to take to save for your child’s future.
1. Create a Children’s Savings Account
Look into opening a high-yield savings account on behalf of your child. Such an account is a wonderful place to put your child’s gift money from the holidays or for birthdays, as it can accumulate and grow over time. You can also assist your child in setting up a Roth IRA account if they have a source of income. As your child’s savings grow, you can use this money toward their college tuition when they get older and graduate from high school. This can be incredibly beneficial for their educational future and can help you avoid making future college-related mistakes.
2. Hack Housing Costs
Avoid getting into situations where you must pay for extensive and expensive repairs by taking a preventative approach. For example, plumbing issues like toilet clogs aren’t just messy.
They can be quite costly, so you must be careful about what goes down your toilet. Simply because a supermarket sells a toilet-friendly item doesn’t mean you should flush it. According to Reader’s Digest, flushable wipes are common culprits for blocked pipes and toilets. The best thing you can do is consult your local plumber.
Another way to save on housing costs is by renovating your current home instead of buying a new one when you need more space or a fresh start. According to Houzz, about 22% of homeowners will spend between $5,000 and $15,000 on remodeling projects. It’s way cheaper than purchasing or constructing from scratch.
3. Talk Saving and Budgeting With Your Kids
It’s not only parents who can benefit from learning how to save while raising a family. Regular budget conversations are a great way of including kids in the running of the home. You can discuss the fundamentals of spending and saving without delving into the specifics of your income and expenses. Ensure you make it fun so you don’t lose their attention when you say ‘budget.’
4. Adopt Good Dental Health Practices
Dental costs are quite high. With kids, trips to the dentist’s office are almost inevitable. While having insurance that covers these high costs is a good idea, it’s wise to start by instilling proper dental hygiene practices in your child while they’re still impressionable.
Swinney Dental estimates that 41% of Americans floss daily, while 20% never do. Don’t let your kids be part of those who don’t. Teach them how to floss properly at an early age.
5. Plan for Holidays
The holidays can get expensive for a family. Everything is on ‘offer,’ and the spirit of giving can make you go into a shopping frenzy. Set a spending budget for gifts, and keep a separate savings account for the funds. This way, you’ll always know how much you can afford to spend.
6. Don’t Shy Away from Secondhand
Considering how fast kids grow, you’ll realize buying new children’s shoes and clothes is a money-wasting mistake. Yes, you want to give them the best, but it doesn’t have to mean you have to spend a lot of money. Plus, kids don’t care much about the price or even the clothes themselves.
You can buy them the most expensive shoe brands new from a mall, and they’ll still play in the mud while rocking them proudly. Make yard sales, consignment shops, and thrift stores your friends. You’d be surprised at how much quality stuff you can get.
7. Focus on Food Costs
Grocery bills can quickly get out of hand when you don’t have some structure for your family’s eating habits. Make a weekly plan for breakfast, lunch, dinner, and snacks. This way, you can rely on your meal plan to ensure you only get what you need when shopping for groceries.
8. Keep Birthdays Simple
Your kids deserve to be celebrated on their birthdays. However, you don’t have to spend extravagant money to make great memories. Something as simple as spending a day at the beach with family and friends is low-cost but will mean the world to your youngster.
One of the best things you can do for your child is to secure their financial future. Doing so will give them the freedom to pursue their dreams with confidence. Use this read as a guide for steps to take to save for your child’s future.
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