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.