Why do people save for children and grandchildren? Presumably because they want to help secure their future and enable them to have the best possible start in life.
- Perhaps to make sure that the grandchildren can afford to go to University and not come out loaded with debt.
- Maybe to help your children save a few years on their mortgage, or to save for grandchildren who might one day struggle to find a deposit for their first home.
- Some people just want to “save” their grandchildren from the State Education system (a surprisingly common request).
There are several ways you can do something about saving for kids and grandkids. We have left the best to last, so if you want to save for children and grandchildren, read on:
- Small regular savings for children – perhaps a few pounds each month into a children’s saving account.
- Occasional contributions – small lump sums – there are some quite nifty investment plans which take small amounts from time to time and (if it suits) regular contributions too. (We always think that a great way to build up savings for any child is to ask everyone to split presents in two: a modest toy or whatever, plus some cash. The cash can be squirrelled away as part of the child’s savings – though you do need to keep a record of where they come from, as there are tax disadvantages to gifts from parents. Perhaps better to keep anything from parents separately. Ask your financial adviser for guidance!)
- Planned giving where Inheritance Tax is an issue, why not check out our Inheritance Tax planning guide?
- Probably the best way to is to create a Family Bank© which creates savings which will (eventually, when you no longer need access) for your children, your grandchildren and probably savings which will benefit even more generations of your family. And saving for younger family members is just the start of the benefits of The Family Bank©…..
Save for children saving for grandchildren.