Of course, mothers and fathers all over the UK want their offspring to have it all, but at the same time they do not want to spoil their children or bankrupt themselves trying to make their kids’ lives special. Not only does it help a child to have to work towards goals themselves, it is also important for parents to spend some of their money on their own happiness and plan their own financial future.
Where is the line?
This begs the question: where is the line? What should you as a parent make sure your children have and what should you merely be supportive towards? As with many things of this nature, there is no clear cut answer. One thing is for certain, if you want to provide something for your child in the future, you will need the financial might to do so. When it comes to saving for children, you can think long term and set up a regular savings account or child savings plan to provide a cash sum at a time when they are older.
So what might you need to think about saving for?
Education – For every parent it will be important for their children to get through infant, junior and senior school, but how much further would you like them to go?
A-Levels are considered to be essential qualifications by most, while a lot of parents are itching to see their offspring go to university. Don’t feel like
you need to pay for everything if they do undertake a degree, but it will really help their studies if you can cover some of their costs. The same goes
for vocational training.
Home – Just like you did, your children will eventually want a house to call their own. In no way are you obliged to help them get it, but the way the housing market looks for this generation, it feels right for parents to provide some cash towards their children’s mortgage deposits. If you feel strongly about this issue, then you could insist the cash you give them is spent on a house deposit and nothing else.
Car – Another major ‘first’ for a young adult is their first car. Plenty of parents see this as something their children should pay for themselves; but if you put aside a little every month you could easily save enough to buy them a little run-around that they can get excited about.
Marriage – Traditionally it is the father of the bride who pays for a wedding, which means if you have a daughter you will want to have some cash set aside for this happy day – dowries are a thing of the past, but everything wedding-related has a tendency to be expensive. Even if you only have sons you may want to put something aside for when they get married; it can be such a helping hand for two people starting out their life together to receive a sum of money.
Article written by soon-to-be family man Nick Wilson and commissioned by child savings company Foresters Friendly Society.
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