4 Ways to Save Money for Your Kids
One of the biggest arguments that many people have against having kids is the enormous amount of money that they will have to spend on the kids as they grow up. With kids around, you would never know how much or when you will have to spend on them. Expenses are not only big but they also come at a time when you are least prepared. On top of ensuring that they have a comfortable life, you will also have to make sure that they get some of the luxuries that you can afford. And not to forget going to college. Paying for college is an expense that will drain a lot of people. Instead of worrying about money most of the time, you have to save and here are some ways to save money for your kids.
1. Spend wisely on toys
Before you splurge on toys, think if your kid will play with it for more than a few days. No matter how expensive a toy you buy for your kid, the kid will walk around with a torn teddy or a dirty blanket all the time and will never let go of it. Instead of splurging on expensive toys, make sure that your kid just has enough. Follow this even when your kid grows up and asks for a car. Instead of going for top of the line, get a car that is economical for both of you. You will be surprised at the amount of money you can save on these things.
2. Start a savings account or a fund for your kid and try not to dip in it
Start a saving fund for your kid as soon as she or he is born. Set aside a particular amount every month or invest in a fund that grows along with your kid. Do not make the sum too big that it is a strain on your finances or that it tempts you at times. Save a decent amount every single month so you can have it in your time of need. Your kids will be eternally thankful when they are not left to deal with their student loans themselves.
3. Let them know they cannot have some things in life because that amount goes into their savings
Encourage your kids to save too. Try making a rule where you put in twice or thrice the amount that your kid saves. Not only will you teach your kids some good habits about saving, but you will also save a lot of money in the process.
4. Never force your kid or succumb to your kids demands for taking up an expensive hobby
Imagine the amount of money you can save on horse riding classes. If you know you can never afford a pony or that your kid has no future in horse riding or it is just a passing fad, be firm and do not go for it. Money not wasted on these things is money saved.