Saving For Your Children
One of the big drives behind saving money and investing is looking after your family. An effective way of doing this is to specifically save money to invest in your children’s future, and there are a few ways of achieving this.
You can establish a savings account as soon as a child is born, putting money in for them. Children can access their money from the age of seven (though this does depend on the type of account), giving them a chance to learn how to handle their own finances from a young age. Some providers further encourage this with free gifts like money boxes, helping to cement the saving habit from an early age.
There are two main types- an instant access account allows the child to get money out when they want, while a regular savings account is more restrictive but offers a higher rate of interest.
Getting the best deal
Like any form of account, there are different types available from the various providers. Some will provide more enticing free gifts; others will offer a higher rate of interest (though this may be reduced if money is withdrawn too often, remember to check the terms and conditions before agreeing.)
Another factor to consider is when you want the child to access the money. It may be that you want to have the fund set aside for university, in which case a fund for when they are 18 might be the most appropriate. In other cases you may want to allow for a bit more flexibility, effectively creating a pocket money account that they can access rather than giving physical cash (this is becoming increasingly relevant as people use cards and online payment systems rather than cash).
A good way to gauge this is to look at price comparison sites, allowing you to look over the features of each account and decide what is most appropriate for the needs of you and your child. Ideally, you should look at more than one price comparison site, as this will allow you to get a number of different matches and decide on the best option with the most information you have to hand.
We can help
After you have looked through the price comparison sites, checked the offers and looked at the levels of interest available, you should be able to get at least three appropriate accounts.
As a family firm, we understand the needs of families. You want to give your children the best possible start. Whether it is through helping them learn the nature of saving or to have money set aside for when they need it, we can work with you on this and help you decide on the ideal savings account for your children.
For more information or to discuss your individual financial situation in more detail, we recommend contacting Larcomes Financial Services directly. We will be happy to discuss the range of accounts potentially available and what would be best suited for your particular financial goals.