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Every parent wants the best for their children, including education and health. However, many are still hesitant to save for their child's future.
It's important to start saving money for a child early on. This not only benefits the child's future, but also helps parents manage their finances. It also helps teach children about responsibility and discipline.
So, what are the benefits of child savings, and is there an easy way to prepare for child savings? Let's explore the benefits, how to prepare for child savings, and tips on building child savings.
Planning a child's savings is beneficial for their future. Starting early also helps parents better organize and manage their finances.
For children, having savings teaches them to save early and trains their financial intelligence from an early age. Below are the benefits of planning and building a child's savings:
Separating a child's savings in another passbook helps build a saving habit, especially if the child is 6-7 years old. Invite your child to set aside 20% of their allowance.
Separating family savings or expenses from children's savings can teach your child financial management.
For example, you can encourage your child to set aside their pocket money, consider their needs and wants, and make thoughtful choices when buying toys.
Who would have thought involving a child in planning their savings and finances could help build character and discipline? Children are accustomed to setting aside a portion of their allowance for savings.
Once children develop the habit of thinking before spending money or establish routines for managing their pocket money, they are more likely to understand the value of money.
It's essential to keep your child's savings separate from household expenses. This is also an excellent opportunity to teach your child to live frugally.
Consider giving your child a designated allowance and encourage them to save their pocket money instead of spending it on food.
Accustom the child to manage their finances independently. As a parent, you should guide them until they genuinely comprehend and handle their finances.
You can have casual conversations with your child about how often they will save, how much they want to save, and ways to add to their savings, such as through an allowance or extra money you have put aside.
Children will become more responsible by managing and regulating their finances. Remember to give simple compliments to encourage them to continue setting aside pocket money for savings.
Those are the 7 benefits of planning child savings. Planning a child's savings is beneficial for parents' financial stability because it is done earlier.
Preparing for a child's education and health savings can be approached in various ways. MinETIKS has outlined the primary strategies that parents should consider when preparing for their child's savings, including:
After researching multiple schools, create a budget plan for your child's education expenses, considering inflation and annual increases.
Need help with a detailed breakdown of your child's school fees? Ensure you follow each step carefully. Read the guide on creating a comprehensive list of your child's school expenses here.
Opening a new account is a highly recommended strategy for preparing for a child's savings. This helps to keep the child's funds separate from everyday expenses and makes it easier for parents to monitor the development of the child's funds.
Make sure to research the benefits of opening a child savings account at each bank, as each bank offers different advantages.
When selecting a suitable bank, consider fees such as the initial minimum deposit, subsequent minimum deposit, deductions, and administration fees.
In addition to paying attention to deposits and administration fees, it's important to note each bank's interest rate at specific balance tiers. Some banks may offer higher interest rates and differentials at certain balance tiers.
After opening a savings account, you can track your child's financial progress using the financial management app FINETIKS. With the high standard of security provided by international banks, monitoring your child's savings development feels more accessible and enjoyable.
You can also receive monthly insights directly from FINETIKS, which utilizes artificial intelligence technology. Download now for FREE at Google Play or App Store.
Child savings are a type of financial investment for a child's future, so it's important to carefully select and prepare them, given the various options offered by banks.
Some banks may offer specialized child savings accounts for different age ranges, such as 0-12, 0-17, 12-17, or 14-17. Use the following tips to choose the most suitable child savings account.
Remember to seek advice from friends, family, or financial experts. After getting recommendations, remember to continue your research by checking different reviews on the Internet and social media.
Opening separate savings accounts for education or children's health can positively impact both parents and children. Be sure to research each bank's specific requirements.
#TambahFinter in organizing finances with FINETIKS. Seeing and managing financial developments in your child's account is now easier! Remember to share this article and follow FINETIKS on social media.
