A child psychologist, speech pathologist, occupational therapist and teacher are joining forces next month to…
Five Ways To Give Your Kids A Financial Boost
Getting your kids to eat their greens or tidy their rooms can often lead to tears and tantrums (and not just from the kids!). Thankfully getting you and your children into the habit of saving regularly doesn’t have to be that hard. Finance expert Louisa Sanghera explains how in 5 easy steps….
New research from Westpac has revealed that nearly half of parents don’t put money aside for their children’s futures because they don’t feel that they can afford to; twenty per cent don’t even see the importance of building their child a nest egg.
But by putting just a small amount away each week now can make a huge difference for your child when they turn 18.
Even at the current low interest rates, a saving of $10 per week will grow to around $12,500 over 18 years – a nice lump sum of cash your child can put towards their education, a car, or a back-packing trip through Europe with the boy/girlfriend that you don’t approve of.
And, really, making a saving of $10 shouldn’t be that hard:
FIVE WAYS TO GIVE YOUR KIDS A FINANCIAL BOOST
- The best way to save is to set up a standing order that comes out of your account each month, straight after you get paid. That way you’ll hardly notice the money has gone. If that’s not possible, cut out a couple of takeaway coffees each week or simply pop all your loose change into a jar on your kitchen bench. It’s surprising how quickly the coins stack up.
- Once your kids are old enough, get them to start earning their savings. Pay them to do chores around the house or, even better, get your friends and neighbours to pay them for washing cars or walking dogs. This has the added benefit of teaching your children about the value of the money they earn.
- Maximise their savings by choosing an account with the highest interest rates, so shop around. Even better, offset the account against your mortgage and reinvest any savings you make on your mortgage interest.
- Once the savings start to build up, chose term-deposit accounts, which offer higher rates of interest but lock up the savings for set periods of time.
- As part of its 200th anniversary, Westpac is kick-starting any new savings accounts opened for children born this year with a $200 bonus; the perfect start for bub’s first steps towards a secure financial future.
Louisa Sanghera is a Finance Broker for Residential Mortgages, Vehicle and Asset Finance, Commercial Lending and Budgeting and Cashflow Coaching with Zippy Finance.
She has gained more than 30 years in the Banking and Finance Industry, and since founding Zippy Finance has become a multi award nominated expert in the field of finance featuring regularly in industry press and speaking at finance and investment seminars across the country.
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