How To Save Money For Kids
When deciding to start a family, it is important to learn how to save money for kids sooner rather than later. Children are expensive and being financially prepared for supporting children will make the process easier.
- Plan how many children you wish to have. Decide with your significant other how many children you wish to have. There is a big difference when saving money for kids between a family of three living on $40,000 a year and a family of five living on the same $40,000.
- Check out how much items costs. When saving money to have kids, it is important to realize just how much having children cost. Think about having to purchase formula, health insurance, food and clothing for your new family members. Don't forget the cost of gas when driving children to play dates, school and doctor’s appointments.
- Begin budgeting before you have kids. The easiest way to save money for kids is to begin saving before you even have kids. Once you have some idea of how much a new baby is going to cost, begin putting money into a savings account. This money can be set back in case of emergencies.
- Set up a college savings account. Before or shortly after your child is born, set up a 529 college savings account to help your child with exorbitant college tuition fees. Don’t worry about trying to save money to pay for four years of college. There are always scholarships and grants and, if needed, part-time jobs. A small amount can help lighten college's financial load.
Posted on: Apr. 30, 2010