It’s only last week that I wrote about helping my son into adulthood. The reality is, kids don’t suddenly become adults overnight and aren’t suddenly able to afford mortgage or rent and to run a car. Many of them need a helping hand from their parents to get started. If you think babies and toddlers are expensive, you ain’t seen nothing yet!
But how much does it really cost to raise a child to adulthood and support them on those first few steps into their adult life? Rather a lot, as it happens! This infographic from Shepherds Friendly gives us the shocking truth. The average 5% deposit on a house for a first time buyer is over £10,000 and car insurance for a 17 year old is over £2,000 a year. Teenagers and young adults really aren’t cheap!
If you want to save for your child’s future, there’s no time like the present. Although most families are only saving between £10 and £50 a month for their children. And, let’s be honest, that’s not surprising. Not many of us can afford more than that, when we’ve got to fork out for everything from the mortgage to food and bills right now. Of course, there are many people who can’t afford to save anything at all. If that’s the case, keep it at the back of your mind for the future. Even if you start saving when your children are a bit older, you will both be grateful for that little nest egg when the time comes.
Because it is never too late to start saving for your children and there are a number of ways you can do it. It’s not just about opening a simple bank account and watching the kids get a few pennies of interest a year. There’s a Junior ISA, which is always popular and is tax efficient. There’s a Younger Saver Plan, which can be opened by anyone for a child – a parent, grandparent or anyone else who wants to save for a child’s future. Junior Money Maker lets you invest for your child in the long term, which means you could make more money for them than through the other plans, but there is an element of risk, as there always is with investment plans.
Personally, I’m very grateful for the little bit of money my parents have put aside every month since my children were born. It will give them a much-needed cushion to help them through university or maybe towards the running costs of their new car. I wish we had done the same for them as my parents have, but we weren’t in a position to do so a few years ago.
This is a sponsored post.