It feels like every month there is a brand new “must have” toy, video game or piece of technology released for children. They may beg, plead and cry for the top of the range toys at the time, but over a third of parents claim that new toys only entertain their children for one week before they get bored of them. As well as this, the average children’s toy box costs a staggering £743 per household!
Instead of feeling that your money is wasted when it comes to gifts for children in your life, why not go for a different approach, and offer them the Gift of Saving?
How will the gift of saving help my child?
You can predict how quickly your child will lose interest in their toys, but with the current housing crisis, the rising university fees and the uncertainty of the UK’s interest rates, you can’t predict their financial future. It’s a turbulent time for young people and their financial future at the moment and some might claim that there has been no better time to begin saving for a child to help give them a financial boost at the beginning of their adult lives.
If you choose to start saving for your son or daughter now, you can pay as little as £7.50 a month to offer them an invaluable helping hand once they turn 18. They will be able to use their money for whatever they want, be it towards a house deposit, a contribution to a wedding, help with university costs or their first car.
Why choose a child savings plan?
When you start considering all the costs associated with your child growing up, it makes sense to start putting money away for the future.
Child savings plans are a great way to ensure your child’s money stays untouched until their 18th birthday, or even longer and to make sure that they are the only one who receives the money when they plan comes to an end. The will then have a choice to spend the money.
When you choose to save with a mutual society like Shepherds Friendly, you will be able to save tax efficiently. This means that unlike a normal savings account with a bank or building society, there will be no income or capital gains tax to pay on the growth of the savings in the account, and the child’s final lump sum can be accessed tax-free.
As well as this, the Shepherds Friendly Society’s Young Saver Plan offers a valuable sickness benefit if the child who has the account is unable to attend school after four weeks of sickness, just as an extra helping hand. The sickness benefit will be paid to the child’s legal parent or guardian until the child returns to school.
Are you unsure how to start?
If you are unsure how to begin saving for your child, we have put together some helpful tips to get you on your way:
- Start investing as soon as you can- saving for children is a long-term goal, so you can’t keep putting it off!
- Invest as much as you can budget for- instead of trying to work out how much your child will need in the future try to invest simply what you feel you can afford each month (don’t be afraid if the amount fluctuates)
- Try to save at least a little bit each month- even if you can only afford a small amount, consistent payments will all add up over time.
To find out more about child savings and what options are available to you, take at look at the brilliant child saving plans offered by Shepherds Friendly Society.