Every parent worries about their child’s future, but very few of them start thinking about their financial security from the moment they’re born.
This is understandable – after all, you have your own expenses to think about as well as a long 18 years of buying school supplies and funding holidays.
However, taking some small steps as early as possible will put your child in much better stead as they grow older.
Here are some ways to help your child be more confident with money in the future.
Take out life insurance
You probably don’t want to think about it, but if you were to die before your child is old enough to support themselves, they would be in a very difficult situation.
This is especially the case if you make most of the money for your household.
However, it would also be difficult for your partner, as they’d have to shoulder the whole mortgage and potentially invest more into childcare as a single parent.
As a result, it’s important to compare quotes for couples life insurance as soon as possible.
Most policies will be cheaper the younger you are when you take them out, so there’s no time to waste.
Save for your child
Even if you can’t save a large amount of money for your child each month, even small amounts will add up over the years.
Children’s savings accounts usually offer higher rates of interest, so make sure you open one in your child’s name rather than saving into one of your own accounts.
Alternatively, you could put money into investments for your child. While investments do add a bit of risk into the equation, you’re likely to get a decent return over the course of your child’s life, which could be used to fund their education.
Teach them how to manage money
One of the most powerful skills you can give your child is effective money management.
After all, children who have lots of money but can’t manage it are likely to be broke more quickly than children with less who know how to make their funds work for their needs.
A great way to help children learn about spending and saving is to give them pocket money that they can use to buy things they want.
They’ll come to understand how waiting to buy things for a while can allow them to make bigger and better purchases in the future.
Offer support in adulthood if you canLife can be difficult for young adults, especially if they’re still in education or working low-paid internships and jobs.
If it’s possible, make sure you offer your adult children support while they find their feet.
This could be by allowing them to live at home or giving them a small amount of money when they need a hand with bills.
You could even offer to pay for some basic necessities, such as a new vacuum cleaner or winter coat.
Whatever it is, try to show your children that you’re there for them when they need it the most.
Luciana joined our team as a mum blogger in 2020. A dedicated mum to a lively daughter and a dog, Luna, Luciana brings authenticity and passion to every post. Her expertise in parenting and lifestyle topics offers practical, relatable advice for real-life situations.