Wouldn’t it be nice to have $6,000 set aside to help your child purchase their first car? Or maybe just giving them that chunk of money to put into an investment or to help them get started in life? Or maybe even putting that towards their college tuition?
There is an incredibly simple way to start saving that up money now.
After we started this for our first child, we realized how simple it was. We now have several thousand dollars set aside for each child. They each will be given the $6,000 (possibly more) once they reach the age of 16. As of now, we are thinking we’ll put it towards their first car.
Don’t take me wrong, we are not out to spoil our children.
We are considering matching what they themselves can put towards their own car. This would motivate them to work hard for their money and then the total amount they could have will possibly be doubled!
Here is the simple trick for you to give your child that financial boost…
$7 is set aside every week for each child and placed into their savings.
That simple! Most of us spend that amount on coffee each week.
Since we have five children, we budget $35 each week to be placed into our children’s savings. We have done this ever since our oldest was born (seven years ago). So for us, this has been a gradual increase in our budget.
If you follow through with this, from the moment your child is born until the time they turn 16, you will have accumulated $5,824. Throw in a little birthday money from family over the years and you will easily reach $6,000!
Also, once you really understand investing, you could even multiply that number before the child turns 16. Once you have a chunk saved up for your child, place it into a wise investment, and it will grow. Which leads to the thought, “Yes, money does grow on trees.” (topic for a future post)
If your children are older, it’s still not too late to start. Any little amount could help them in the future with life, a house, car, business, investments, or even saving up for their inheritance. And as I mentioned above, you could match the amount they have saved up… which may even motivate you to keep up with them!
This is how we simply save up $6,000 for each child.
I’d love to hear your thoughts on this. Do you have a savings set up for your child’s future? If so, how do you save for it? What is the strategy you use?