How to build a sizable savings fund for your children?

2Are you thinking about how to save for your children’s future? It’s all very well saying that we should save for our children, but with the economic climate as it is, every penny counts. So where can we find that extra cash to put aside for our little ones?

Here we give a few ideas on how to build and maximise savings for your children.

Sell your unwanted clothes

This is probably one of the easiest ways to release some money. The fact that children grow out of their clothes so quickly, means you will have a steady stream of unwanted clothes for at least 18 years. Plus you will no doubt have clothes of your own that you no longer wear or have a need for.

Keep a hold of those clothes that are in good condition and post or take them to a clothes buying outlet. These can be found online or through second-hand shops on your local high street.

Why keep all that clothing hogging cupboard or attic space at home, when it could be working much better for you when sold?

Sell other unwanted belongings

You don’t have to limit yourselves to clothes. There are many household items that someone somewhere will want. For instance, you could sell old mobile phones, DVDs, CDs or computer games. Your children are bound to have worked their way through some of these and therefore no longer want them. Sell them and benefit from the profits.

Invest

Investing your money to create a revenue will generated a strong sum for your children, and involving them in the process will also give them good entrepreneurial training for the future. Investments can be large or small. Here are a couple of ideas:

  • Funds – the stock market is good for long-term investment, so worth starting when your children are young
  • Property – to either to resell for profit or rent out for a longer term investment

Choose a high interest savings account

Once you have that extra money to save for your children, where should you keep it? It’s worth shopping around for a high interest children’s savings account or a Junior ISA. Check out sites such as ThisIsMoney.co.uk for comparisons on the best saving rates currently available for children. According to MoneySavingExpert.co.uk some offer a rate as high as 6%!

Teach your children to save

It is a good idea to instil the idea of saving money into your children from an early. This will help them pick up a good habit for life. If they receive pocket money from you, suggest how they could save up for a future toy for example. For teenagers, if they have a part-time job, encourage them to put a bit aside for when they finish school, or for their summer holiday.

 

The best approach is to consider a mix of the above solutions, but why not start with the first on our list and sell unwanted clothes today?

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