When your monthly budget is tight, it can be challenging to save for your child's future. According to Brigitte Lyle Marquez, a branch operations officer at a local bank, there are several effective—and fun—ways to start saving for your little ones.
Marquez gives a more immediate reason to do financial planning for their future now: "Apart from being able to set aside money for your child's future without the time pressure, saving is also a good opportunity to make your kids more aware or conscious of the family finances." She suggests some ways you can save for your children's future:
Open a kiddie savings account.
"[Some] banks offer products that cater to younger customers, [like] a special savings account meant for kids below 18," Marquez says. Opening a savings account for your child can help you make sure he has money for the future that is already under his name.
Have a money jar.
"The effectiveness [of this old-school method] is relative. The good thing is that you can keep track of the amount you are saving weekly, monthly, or annually. This tests your willpower and your resolve to save, and teaches you that you can choose not to spend money just because it is within reach." Marquez says.
She adds that the success of this method still depends on how motivated you are to save, regardless of the means, or the level of control you have over your spending.
Invest in mutual funds.
Sound scary? If you're on the conservative side, turn to an expert. This method lets you earn more than saving your money in a bank. You don't have to do it yourself. A professional money manager takes charge of the money pooled from different investors.
Make long-term investments.
If you are more adventurous with high-risk investments, buy stocks. Monitoring their performance and trends can be time-consuming, but the good news is you can hire a professional broker to look after your investments and even give you recommendations for your next one.
Invest in a small business.
Be a mompreneur. If you are good at cooking, sewing, or painting, use these skills to sell your very own products in bazaars or start an online shop. Save what you earn or use it to grow your business.
Get an insurance plan.
Look into an education policy, which can serve a double purpose: to help you save money and secure your child's educational expenses.
Consider AcademiX from AXA, which lets your investment grow until you can receive payouts every year for four years, which you can allot for your child's college education. You can also use the remaining amount in the policy as a graduation gift to your child.
AcademiX also comes with life insurance coverage. In case you pass away before your child graduates from college, his education expenses can still be covered.
Remember: the earlier you start, the more your savings can grow.
AcademiX is a specially-designed investment plan that provides a yearly college fund, a graduation gift, and guaranteed contingency fund in case of your untimely passing. Learn more about it here.