Saving for your child’s future is important, especially when you consider how expensive college is. Thankfully, there are a number of steps parents can take to start saving today in order to ensure their children are financially prepared for the future.
The following are some easy tips to consider:
- Start saving the day your child is born and save as much as you can. Compounding interest will also make your savings grow.
- Save money on a consistent basis rather than on a random schedule. Consider setting up an automatic payroll deduction or having your bank automatically move money from your checking account to a savings account.
- Establish a savings goal to measure how well you are saving, and modify that goal as your salary increases.
- Ask relatives to contribute to the savings account in lieu of birthday gifts.
- Teach your children about the importance of saving. When they’re old enough, encourage them to get a job to further build upon their savings.
When it comes to any kind of savings, the earlier you start, the better. There are a number of resources online that provide parents with a better sense of how much they should be saving based on their own income and inflation.