The main three choices that children of school-leaving age are faced with now are to attend university; to take up some form of training/learning on the job such as an apprenticeship; or to enter the workforce. Each of these carries its own financial burden.
Whether that be the cost of tuition fees and housing at university, or the cost of transport and a work-wear wardrobe if they enter the rat-race, life is made that bit easier by them having a financial safety-net.
Some things to consider are below:
Start today – start saving up sooner rather than later, to give yourself more time to build up a healthy amount of savings and benefit more from compound interest over time.
Work out how much you want to save – If you aim to have a certain amount by the time your child turns 18, it becomes easier to break down into monthly savings targets. If you commit to saving a particular amount over time, do not forget to factor it into your wider household budgeting, so other financial commitments and objectives are not overlooked.
Set up a Junior ISA for your child – You can save up to £9,000 per year for your child in a Junior Individual Savings Account. Your child does not pay tax on the interest they earn on the savings, so it could be an ideal way to build up a pot of money before they turn 18.
Advise your child to get a part-time job – If your child is now in sixth form studying for their A levels, this could be the ideal time to suggest they look for part-time employment. Not only could this give them valuable work experience that will stand them in good stead for the future, but it also provides them with the means to cover their own living costs, teaches them the responsibility of managing their own money, and eases the pressure on your wallet.
Find out if your child is eligible for grants and bursaries – This only applies to continued learning, but sometimes there are grants and bursaries available that could assist with costs. Check websites to see what is available and whether your child could benefit.
Speak to a financial adviser – Saving up to make sure your child is financially supported can be difficult, particularly if you have other financial commitments and goals that you want to achieve. It is well worth seeking advice from a professional, regulated adviser, as they will be able to take a holistic look at your finances and work with you to create a plan of action that reflects all your objectives.
