Saving for Children

Why is it important to teach your children about saving from an early age? Children who learn about saving and everyday finances from a young age will be better prepared to manage their own finances as adults. That's why it's important to talk to your children about money and involve them in their own finances.

Five saving tips for children

1. Teach your children about saving: Talk to your children about money and the value of money. Teach them about saving, and that it is wise to set aside some of their money for something they want. You can encourage them to save a little of the money they receive for confirmation, birthdays or Christmas presents.

2. Give pocket money: Let your children have the opportunity to earn their own money by doing small jobs at home or in the neighbourhood. Give regular pocket money each week or month, and let them decide for themselves how they want to spend the money.

3. Give your children a reward for saving: Give your children a small reward when they have saved up a certain amount. This can motivate further saving and teach children to set goals and work towards them.

4. Involve your children in planning purchases: Involve your children in planning large and small purchases, such as a weekly shop, a holiday or a new TV. Let them contribute ideas on how you can save money and plan how you can reach the goal together.

5. Be a good example: Be a good example for your children by being mindful of your own spending and priorities. Talk openly about finances and the importance of saving, and show that you yourself are willing to set aside money for something you want.

1. Should you save in the child's or parent's name?

You should consider whether you want to save for the children in your own name or in the children's names. There are advantages and disadvantages to both:

2. How long do you need to save?

How long the money needs to remain invested can be crucial in determining which savings option you should choose. Saving for children will typically be long-term saving. If you are thinking ten to twenty years ahead, saving in an equity fund may be a sensible savings option to consider. If you want the money to be easily accessible, saving in an account may be a good alternative.

Savings in the child's name:

Savings in parents' name:

Historical returns are no guarantee of future returns. Future returns will depend, among other things, on market developments, the skill of the Portfolio Manager, the mutual fund’s risk, and the management costs. Returns may be negative as a result of mark-to-market losses.