With the birth of each of the Beans we began a monthly saving account for them which we and other family members pay into to give them the best start in life. As a parent it is natural to want to be able to help our children as much as possible but are we doing enough?
How much to save?
In a recent survey Money.co.uk it was found that 65% of families in the UK would save between £10-£50 per month per child if they were to put a savings plan into place. Whilst 28% said that saving was a luxury they just couldn’t afford. Are you saving enough for your child?
How much might you need to save for one child?
Whether you are saving for their first car, first home, university fees or the life adventure of a trip around the world then this may or may not be enough money. The research carried out discovered that in order to save for all of these, parents would need to save on average £259,000. We have four children so that’s a heck of a lot of money to save.
Shepherds Friendly, along with many other Friendly societies offer a variety of tax-efficient savings plans which could make your savings work that bit harder to provide for your child’s future. A Junior ISA is one such option where friends and family can also contribute on behalf of the child and the capital growth is tax-free.
The infographic below will give you plenty of food for thought on what your money will provide in the future. Do the calculations to give yourself an idea of how much your savings will equate to in say 18 years time. I was seriously surprised when I did the calculations myself.