Benefits of Opening a Savings Account For Your Baby

Benefits of Opening a Savings Account For Your Baby

Having a baby is expensive. A recent study carried out by MyVoucherCodes showed that, during the first month most parents spend over £500 on their newborns. From that point, because you do not have to buy as much equipment, the costs do tail off a little but some additional expenses, like nappies, are unavoidable.

A Junior ISA from Wealthify is a great way to save for their future once those initial big purchases have been made.

It only takes a little to get into the savings habit

The sooner you start saving for your child’s future, the better it will be for you and them, in the long run. The chances are that in the first year or so of your child´s life you will not have a lot of spare cash available. But even putting £5 to £10 a week, or month, away for them is enough to get you into the habit of saving for their long-term future.

Saving regularly sets a good example for your child

Later, when they are older, your child will have access to the details of their ISA accounts. It would be good for them to be able to see that you saved something every month regardless of what was happening in your lives. This will help your child to understand that saving for their future is something that they need to make a priority.

It may not be as hard to get started as you think

The great thing about Junior ISA’s is that friends and family can help out too. Close relatives are also allowed to put money into your child´s ISA. Most grandparents love the idea of helping their children and grandchildren out in this way.

Savings open up a world of possibilities for your child

They know that the cash that is in a Junior ISA can potentially be used for driving lessons, as a deposit on a new home or to cover university living costs. These are all things that they want their grandchildren to be able to afford.

Your child will appreciate having those savings available

Your child will really appreciate the fact that you have saved up a substantial amount of money to give them a good start in life. They will usually be careful about how they spend that cash. Of course, there is a chance that they could blow the lot on a nice car. However most young adults actually invest that cash in acquiring the skills they are going to need as an adult, for example, by learning to drive. This is particularly the case if you tell them about their savings account fairly early on and discuss ways they could put that money to good use. The younger they are, the more likely they are to listen to your suggestions. Once they have taken them on board and settled on spending that cash wisely they are less likely to waste it when they get access to it, at 18.

If you would like to find out more about saving for, and with, children, you can easily do so by clicking this link.

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