The cost of living is constantly going up. Property and higher education are more expensive than ever before. Many parents are investing in their kids’ future in order to give them a better start in life and help them deal with the expenses ahead. Here are just a few ways in which you can provide for your children’s future.
Set up a savings account
A savings account could be the easiest option, allowing you to save up money over the years and give this to your child when they reach a responsible age. There are lots of specialist child savings accounts out there that could be well suited to this. These accounts can be set up in your child’s name and may have limited access until your child reaches a certain age. It’s worth shopping around for interest rates – many accounts have fixed interest rates so that you know exactly how much interest you’ll earn in the future. On top of banks, try looking at online savers as well as looking into options such as trusts and government bonds.
Try alternative investments
If you already have some money saved up, you could try increasing it through other modes of investment, allowing you child access to more money in the future. This could be riskier than putting the money in a savings account, so bear this in mind. There are lots of examples of investment opportunities out there from peer-to-peer lending to spread betting. You could even try investing money into assets such as property or collectibles, which could be sold or rented to help save up funds.
Consider prepaid tuition
If you want to send your kids to private school but don’t think you’ll be able to afford the fees, you could start contributing money early via a prepaid tuition programme. This allows you to pay off some of the fees now so that you’ve got less to pay when your child finally reaches this school. Not all private schools have these options – this is something you should ask about directly if there is no information advertised online.
Set up an inheritance fund
Another option could be to plan a way of leaving behind money when you die. It’s possible to leave savings accounts to a specific person when you die. You can even plan to leave behind your pension pot when you die. This money could liable to various taxes including inheritance tax, although there are forms of savings that aren’t taxable. Alternatively, you could simply take out a life insurance scheme that pays your children a sum of money upon your death. Life insurance can get more expensive the older you get – it’s worth comparing various insurers to find the best deal.