Parents like to provide for their children and saving for your child today is a wonderful gift for their future. Not only can they start their adult lives with some savings in hand, but getting kids involved early with saving also helps them learn important lessons about money. As an expat, saving for your children can be more complicated due to different countries, currency and knowledge of how to do it.
Getting children involved with money and give them an understanding of the concepts and implication early can help them greatly in later life. The UK Money Advice Service has some excellent points:
- A good idea for very young children where the key things they need to learn are that money is not a toy and that you need to keep it in a safe place.
- Help them understand the value of different coins and notes, and that bigger coins aren’t necessarily more valuable.
- It’s also a good chance to start giving your child regular pocket money, with a small responsibility attached like getting weekend treats. This will help them learn that you have to save up for what you want, that you have to make choices, and that when it’s gone, it’s gone.
- Keep in mind that the amount of pocket money doesn’t matter, it could be as small as 5p, because it’s the practice that’s really important. Don’t miss out the responsibility aspect because otherwise, your child is at risk of simply collecting money, rather than developing an understanding of how money works.
There are many ways to help them, this can be initially by buying a money box for them. Helping them add to this each they achieve a chore or pocket money is a start. If you want longer-term savings, a separate bank account in their name or an investment account that you can add to
We help set up investment accounts for children. They are term-free and invest in low-cost index portfolios, based on when the child needs to access the money. If you want it in their name, then it can be.