Raising a child is one of the biggest expenses for many people. From doctor’s visits to school tuition, parents make huge financial sacrifices every day for their children. With each sacrifice, you want to ensure your child has the best chance for success. Especially when it comes to your child’s financial future. If you want to learn how to increase your child’s future finance, keep reading to find out more.
How to Increase Your Child’s Future Finances
Something many parents are doing in order to benefit their child long-term is increasing their child’s future finances. One common misconception about doing this is that only wealthy people contribute to their child’s future finances. However, this couldn’t be further from the truth.
Anyone at any income level can make a positive difference in their child’s financial future. It can help prepare them for success. Here are a few tips on how to increase your child’s future finances.
1) Make Saving Fun!
Instilling the importance of saving money at a young age is important. It will help set your child up for success later in life. So, be sure to lead by example and start saving money for your child as soon as possible.
Anything you find can be of good use for a savings account in your child’s name, such as:
- birthday money
- spare change
- holiday money
- the money you may find around the house
When your child is old enough, purchase a piggy bank for them and let them put their money in the bank themselves. Teaching children how to save at an early age will set them up for a successful financial future down the road. They will have a nice cushion of money saved up when it comes time for them to look for things like Banff houses for sale (you know…if they live in that area anyway).
2) Teach Them How to Invest
Investing is an essential thing to know as an adult. So, why not start teaching your children about the importance of investing while they are young?
Investing doesn’t have to be boring, either.
Making your child part of the process can be helpful and fun. Letting them watch their money grow can be an exciting experience for them. One way to do this is by opening an Etrade account for them and managing it as their parental figure. When they are old enough, they can take over the account and make investments as they please.
3) Give Them Hand-me-downs
This may not seem like an obvious way to increase your child’s financial future. However, giving your child hand-me-downs can be a great way to set them up for a successful financial future. You will also want to teach them the importance of saving money.
When children are growing, teach them how to find a great deal at your local flea market.
Young girls will love hosting clothing swaps with their friends, where gently loved clothes can be passed from friend to friend.
- Instead of buying your child a new car when they turn sixteen, gift them with a used vehicle, or
- help them save up to give grandma a few hundred dollars for that old car she’s been wanting to get rid of.
This will save them the trouble of having to worry about a car payment at such a young age, and they will learn how to care for an older vehicle and all of the costs that may arise.
How to Increase Your Child’s Future Finances – It’s Your Turn!
Giving your kids a head start on their financial future doesn’t have to be all about putting money into their 529. It can be as simple as:
- saving birthday money,
- teaching them that investing can be fun, or
- just giving them something that’s valuable to them, but doesn’t impact your finances all that much.
It doesn’t have to be a big ordeal or hurt your own financial future. If you want to improve your children’s financial well-being when they get older, just do the simple things. Let me tell you, they’ll appreciate every bit of it when they’re older.
Are you ready to improve your children’s financial future? What will you commit to do for them?
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.