It’s only natural to want what’s best for your children and to support their dreams. However, sometimes we can be so caught up in the everyday worries of making sure they’re looked after now, that preparing for that inevitable future gets completely overlooked.
Giving your kids a great start in life should include a combination of lessons. Those lessons should guide them to make the right choices for themselves, while also providing a nest egg in which to pursue their dreams and aspirations.
If you’re ready to begin those steps today, here are some useful tips and ideas on how to give your children the kind of security that’ll take them wherever they want to go in life.
Setting up a Junior ISA
Setting up a junior ISA provides your child with a tax-efficient method of gaining money you’ve put away for them. All the money and investment returns that come from a Junior ISA are protected from tax, as long as the contributions put into the ISA don’t exceed £9,000 per tax year.
When your child turns 18 years old, the money in the ISA is legally theirs to spend as they please. This can be set up as a surprise for your child’s 18th birthday, or be something they’re aware of so that they can plan for their future accordingly.
Educating them on the benefits of saving
Showing your kids the benefits of saving can come as early as explaining how their pocket money could be spent, or being open with them about everyday household matters that involve saving. Either way, teaching children about money helps them to understand and appreciate it.
By keeping an end goal for that saving in your child’s mind, like a weekend treat, or an upcoming holiday, they’re better able to fully comprehend why people save and what the rewards of saving are. This will bode well for them later in life, having developed this understanding at a young age.
Encourage others to contribute to their future
Whether it’s a Junior ISA, a savings account, or even a piggy bank they keep on a shelf, encourage others to contribute to their little nest egg and watch it expand.
Anyone can contribute to your children’s ISA, and sometimes it’s a good idea to ask well-meaning relatives and friends to add a little financial support to this ISA, instead of buying a toy or a game for your kids at birthdays and Christmases.
These small gestures from multiple family members and friends will soon grow into an exciting future for your child.
Implement chores with financial rewards
This can be as basic as earning a little money for loading the dishwasher to doing local chores for trusted neighbours in the street. Either way, there’s nothing better than a financially rewarding task to give your children the right comprehension of what it means to earn their own money.
That sense of accomplishment will give them that final understanding of earning, saving, and investing their money wisely when they finally blow those candles out on their 18th birthday.
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