Thursday, 27 February 2014

Start Your Kids Saving At The Very Early Stages

Here is a simple sum. It is simple mathematics and not hard to understand.

100 x 300 = 30000

Now let’s put this same sum into a family context.

If you start saving £25 every week for your child, from the time they are aged five, by the time they reach the age of 30, you will have saved £30,000 for them, not including interest. The age of 30 is the average age for getting married, buying a house, and starting on a career path. Imagine being able to give your child a lump sum to help them buy a house or car, or to start a business.

But let’s put the £25 into context now, because when money is tight, this can seem like a large amount of money to set aside each week!

£25 is the equivalent of 5 x £5 lunches at work.

£25 is the equivalent of three average bottles of wine bought from the supermarket.

£25 is 3 packets of cigarettes.

£25 is one take-away for two or three people.

£25per week is just £3.60 per day.

Even if you cannot afford to save £3.60 per day, this simple article hopes to show you what can be achieved with any small amount. Life is getting harder as each year goes by and many parents are worried about their children’s financial futures. Starting to save some money for them, as soon as possible, will help you to keep control of your money, you will have savings which will help you if you need it, but it will be a nest egg for your child when they reach adulthood.

You don’t have to be rich to save. It is just a matter of understanding how money works and making it work for us. Saving a little every day can quickly build up to a helpful amount.

And statistics show that people with savings have better credit ratings, better chances of accessing credit, and they are less likely to need credit. Start with a simple sum and see how you get on. Save just £1 per day and watch it grow.


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