3 Tips to Financially Aid Your Child

When the cost of living keeps continuing to rise, you may have concerns regarding your child’s financial welfare in the future. Even if your child is still young, you may want to consider ways to help them have a bit more security when they reach adulthood. You can do this in several ways, which both give them actual finances to work with and teach them life skills that can make money that much more manageable.

Start Saving Now

Opening a Junior ISA with Wealthify can allow you to save money each month, right up until the point your child reaches adulthood. By utilizing a means that doesn’t require a minimum deposit or monthly payment, you can deposit into it when it is feasible but still gain that all-important interest that helps the money grow.

This could be incredibly beneficial should your child want to rent or buy their own property or even get a car in years to come. Thankfully, this money will also be tax-free, meaning you can reach and surpass the tax threshold without any fees. Speaking of taxes now is the perfect time to introduce your child to things like tax calculators and junior investment tools.

Alternatively, or alongside this, you could also consider how you can teach your child about financial independence. This can help put them in a position where they know how to make smarter choices with their dollars.

Teach Financial Literacy

You might opt to use pocket money or an allowance to show your child the connection between working and gaining an income. For this to work, it can be a good idea to think about which chores or roles will be appropriate for the age of your child or children, and then alter them as they grow.

You may choose to have a set weekly or monthly amount for which all the tasks need to be completed, or instead have a price attached to each chore, meaning their “wage” can fluctuate.

Share Spending Money Lessons for Kids

Children can also benefit quite a bit from being taught how to spend money wisely and make it. The earlier your child learns how to set and respect a budget, the fewer issues they might have with impulse purchasing or even falling into debt.

While it may not always be possible to avoid unforeseen circumstances, showing your child, through your own use of money, discussions, and even allowing them to make decisions, how to live within your means could aid them throughout life.

Alongside this, you may want to discuss the pitfalls of not saving money or relying on credit cards and their effect on their security and lifestyle.

There are many ways you can help your child to be financially savvy. While children should play and enjoy themselves, they could develop life lessons and skills through earlier teachings. Included in this can be how to manage money properly. With these tools and some savings at their disposal, you may better equip your child to live independently in the future. The sky is the limit when it comes to how much we can do as parents to set our children up for success in life!

Do you have any financial literacy activities to share with us?