Tips on How to Grow Your Children’s Savings
Setting up your children’s savings account can be challenging enough financially but knowing how to grow your children’s savings can be an even greater challenge (particularly during a cost-of-living crisis). You will always want to put your money to good use and grow their savings over time, so what are some of the best ways to go about doing this? Here are a few ideas that should help.
Automate Their Savings
One of the best steps to take is to automate money to get into their savings pot. Automatically diverting a percentage of your pay to your children’s savings will ensure that you are saving each month for them without having to move it yourself manually. You will want to set up a separate children’s savings account and set up a monthly payment into this account for shortly after you have been paid. You will want to find an account with a good interest rate so that money can be earnt from these savings and benefit from this compounding over a long time period.
Cut Down on Bills
Monthly bills can put a significant strain on our budgets, but there are always things that you can do to reduce your bills so that you can put more money into your children’s savings. Currently, many households are struggling with bills, with the rise in the cost of energy as well as everything else. So, what can you do to cut down your bills? Here are a few ideas worth exploring:
- Solar panel installation
- Home insulation
- Energy-efficient appliances
- Smart thermostat
- Wearing layers instead of using the central heating
- Meal prep
- Washing laundry on a cold setting
- Spend less time in the shower
- Switch suppliers
Cancel Subscriptions
Another way to grow your children’s savings and set them up to be in a strong financial situation as they get older is to cancel any unused subscriptions that you have. These days, many people pay for multiple subscriptions and not all of these will be necessary. If you pay for more than one TV and film streaming service, for example, then you should cut this down to one. It is also worth looking at any TV packages that you pay for as these can be hugely expensive, and you often end up paying for things that you never watch. This will then free up money each month that you can add to their savings pot to watch grow over the years thanks to compound interest.
If you are looking to grow your children’s savings, then these are a few of the best areas to focus on. Growing their savings over the long term is important for building toward a brighter future, for their financial security and for peace of mind. It is not always easy to grow savings, especially in the current economic climate, but there are always positive steps to take that can add up to create a strong financial position for them as they get older.
