How to take care of your child’s financial future

For each parent, providing security, including financial security, to their child is one of the most important priorities in life. Banks offer many products that facilitate saving and managing funds. Below you can find a list of them that will help you take care of your child’s future.
It is said that raising the first child is an expense for parents of about $200,000, until they reach the age of 20. It is a good idea to start planning your expenses as early as possible and to manage your finances properly. You can already start to put money aside for education or even housing, even though these topics seem to be a long way off now. The earlier, the better, because you can save a lot of money without burdening your home budget. Below we suggest you how to do it.
A savings account for your child
One of the good ideas is a savings account for children, which is offered by many banks. You usually get an attractive interest rate – fixed or variable, as well as no fees for opening an account, making domestic transfers or withdrawing funds from an ATM. You can also control your child’s expenses, use modern apps, and teach them how to manage their finances and how to save.
Bank deposit
A savings account is the easiest way to save, but there are other options as well. Bank deposits are very popular, among others – although they are not as well remunerated as a few years ago. However, you can still find an attractive offer, and then the profit will be higher than on the savings account. It is worth looking for offers with an interest rate of about 3% per annum. They also serve to protect capital against inflation.
Grass insurance
Do you associate dowry only as a concept from history lessons or from books? Well, they are back now and they are a really interesting solution. A dowry policy is a novelty in the offer of banks, but it allows to save money, ensuring financial security. The funds collected in this way will not decrease, and the parent will systematically pay contributions and decide how to increase the capital. Interestingly, it is also a good way to avoid beam and inheritance tax. What are the disadvantages? First of all, it earns a small part of its income. Besides, the agreement is a long-term one, so we need to be sure that we can afford it for many years to come. It is also worth mentioning that in the event of a parent’s death, the child will also receive additional funds. It is also possible to extend the product with additional protection – it is worthwhile to seek advice from an insurer.
Savings plan
One of the proposals is also plans for systematic saving in an investment fund. A significant part of the capital may be earned on shares of listed companies. You regularly make minimum deposits for a fixed period of time, and receive a discount on this as a commission when you purchase participation units. When your child is 13, he or she can give instructions on their own. In this way, he also starts to learn how to manage his finances on his own.

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