Should You Be Saving For Your Child’s Future?

Should You Be Saving For Your Child’s Future?

Saving money for your child’s future is something that many families choose to do. Often, families will begin saving as soon as their children are born, up until they’re old enough to continue themselves. The funds can offer a great gift that could be used to pay for something like a house, a car, or perhaps something similar. As the children reach an age where they are old enough to understand the concept of saving and begin saving money individually, parents will often let them take over and grant them access to the money that has been saved over the years. However, studies show that almost a quarter of Brits have no savings at all, never mind savings for their children. With this in mind, many families cannot afford to put away money for their children’s future, but should they?

What If You Can’t Afford It?

From emergency savings to holiday savings, we all seem to have a lot to save for. But this doesn’t mean that we can all afford it. In fact, as we mentioned above, there are millions of people around the UK who actually have no savings at all. Similarly, 51% of Brits would not be able to live off their savings for over a month. Therefore, meaning that amongst those who do have savings, only low amounts have been put aside. With the increases in the cost of living, it is becoming much more difficult to fund additional costs, such as saving for a child’s future. So, perhaps the idea of this should be put on hold and reconsidered when individuals have the freedom to spend at a less restricted rate.

What Are You Saving For?

Saving for your child’s future doesn’t have a specific requirement. In fact, you can actually save for whatever you think would be best. In many cases, families don’t actually know exactly what their funds will be used for, and this is something that is decided at a later date. From wedding payments to house deposits, often the sum of money is put towards bigger purchases as opposed to multiple small ones. However, this isn’t always the case, as the concept is completely decided by personal preference.

Is It Common?

Yes, saving for your child’s future is common. However, this doesn’t mean it is essential. As mentioned above, most Brits struggle to provide any kind of essential savings, never mind unnecessary additional expenses. Although it would be beneficial in the future, placing yourself in current debt is never the right answer. If you find yourself in a financial emergency with no savings, a payday loan could be considered. However, we advise exploring other options first.

Sometimes, money isn’t the main concern when it comes to saving for your child’s future. Yes, having the ability to offer them some sort of financial aid when needed in the future is great; however, many families prefer to focus on themselves. For example, saving for their retirement or paying additional costs on their current bills and debts to complete them sooner. In many cases, money is spent with regard to priorities and urgencies, instead of future aspirations.