When you have kids, saving as much money as you can to help them out in the future, as you can, is sensible, but what exactly should you be saving for?
1. The “Please Don’t Move Back Home” Fund
You’re going to want to squirrel away some cash to help your child eventually move out – for good. Let’s face it, the property ladder these days is like an exclusive club that only lets in people with bank balances the size of a small country’s GDP. So, if you want to help your kids avoid a lifetime of sky-high rents or sofa-surfing, consider saving for a loan to help them get on the property ladder ( and be sure to click here to find out how a solicitor can help you with a solid personal loan agreement while you’re at it). It doesn’t have to be enough for a mansion in Mayfair, but a little nudge could be the difference between them owning a flat and them setting up camp in your garage.
And hey, if that sounds expensive, just remember – helping them buy a place could save you from the “boomerang child” situation where they keep moving back home every time a lease is up. Think of it as self-preservation with a hint of generosity.
2. The “I Want a Car” Savings Stash
One day, your kid will turn to you with those wide, hopeful eyes and say, “Can I have a car?” And let’s be honest – that’s going to be a moment. Now, you could say no and leave them to figure it out, but having a bit saved up for a second-hand car (or, at the very least, their first insurance payment) might just save your sanity in the long run. Besides, if they’re driving themselves around, that’s fewer “can you drop me off at Sarah’s, Mum?” requests.
You don’t need to splash out on something fancy, but a small savings pot can help get them something with four wheels and an engine – as long as they’re not fussy about it being a Ferrari.
3. The “I Want to Do What with My Life?” Education Fund
It’s not just university we’re talking about here – although that’s pricey enough to make you want to lie down in a dark room. Nowadays, kids might decide to do apprenticeships, take gap years, or enroll in some creative course you’ve never even heard of. Saving for their education, whatever shape that takes, is one of those gifts that really does keep on giving. And hey, a few quid toward a gap year might be just the ticket if it helps them dodge a quarter-life crisis later on.
4. The “Surprise! We’re Getting Married” Emergency Fund
As a parent, you know there’s a good chance you’ll get roped into footing part of the bill for life events like weddings. And even if your child says, “Oh, don’t worry, Mum and Dad, we’ve got it covered,” we all know that can change fast. Save a bit now so that, should the wedding bug bite, you’re not scrambling to fund the entire shindig. And if you’re really lucky, maybe they’ll let you keep some of your savings for a holiday of your own – you know, to recover from all that giving.
Save for these essentials and secure your family financially!
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