Having children is expensive, from day one we are buying clothes, nappies and other essentials. Then it comes to childcare expenses, classes for them to attend, school trips, hobbies etc. I’ve been putting money away for Lucas in a savings account since he was born, some months more than others, depending on what I’ve earned that month. I would like to have something for when he’s older, whether he decides to spend it on his first car, towards uni fees, a house deposit or his wedding day.
According to research from money.co.uk, parents need an estimated £259,000 to cover those expenses. Whilst this total is daunting, focusing on a more specific goal such as saving for a housing deposit, a car or university fees can help you to set more realistic saving goals. However,Shepherds Friendly has done its own research that tells us 65% of parents said that if they had a savings plan in place; they would pay just £10-£50 a month. I can totally relate to that amount, after paying bills and buying what is needed for the month as well as having money to go out as a family and enjoy the time we have together, there isn’t often months where I could easily pay over £50 into Lucas’ account when I make sure I pay into our rainy day and emergency fund savings account too.
Money.co.uk discovered that 28% admitted that saving wasn’t an option as they looked at it as a luxury they cannot afford. However, Shepherds Friendly and many other providers offer saving options that could help you to save more for your child, such as a Junior ISA, where family and friends can also contribute on behalf of the child and any capital growth is tax free. This is the type of account I have for Lucas and both myself as my Mum pays into it. I also put his Christmas and birthday money in it too. Another way to save something without any effort, is a cashback site called KidStart. Rather than sending you cashback when you make your normal purchases online, it is set up to send the money to your child’s savings account. Take a look at Shepherds Friendly infographic to see whether you are saving enough to reach your goal x