As a parent, you probably want the best for your children and you want to be able to provide them with everything necessary so they can succeed in life. However, raising a child can be very expensive, especially when he hits the teen years and he wants to go to college. You probably think there are years before that happens, but time flies so fast, you won’t even notice when your baby becomes an adult. How can you make sure you will always be able to provide your child with everything he needs? Planning the savings when he is little will spare you of many problems to come. Opening a bank account for your child’s savings may be a solution, but not the best one. Here are some great saving tips you can also use!
Think about how much you need
Ok, so you want to start saving, but where do you start? The first natural step is deciding how much money you are going to need for your child. Think about everything that may come up. Choose between private or public schools, think if your child will go to college or not. Planning ahead will spare you of troubles later. Also, make sure you ask your child about his future and what he wants to do with it. You may not realize it, but his opinion matters the most!
Prepaid tuition is a great option
If you do not want to open up a bank account to save money for your child’s future education, you have plenty of options anyway! What about prepaid tuition? You can opt for a prepaid tuition plan, which is usually cheaper than other options and safe to use. You should get interested about the schools you like for your child and see if they work with prepaid tuitions.
Have you heard of brokerage accounts?
Among the options you have to save money for your child, the brokerage account is a very smart one! A brokerage account is very flexible and has high returns if you are interested in long term results. As a parent, you can set up your own account which will be linked to your paycheck. The sum you choose will be directly transferred into that account each month or when you get a salary. There are many saving options for your child, the trick is to get informed about them and choose the one that fits your style and budget the most.