Saving for your children's future with FCM Bank

 

Wednesday 16th September 2015

While many parents are keen to save for their children’s future, it can sometimes seem impossible to put enough money aside. Here FCM Bank’s Joann Mifsud shares her insights on how to make this seemingly-daunting task a reality.

FCM Bank

 

While many parents are keen to save for their children’s future, it can sometimes seem impossible to put enough money aside. Here FCM Bank’s Joann Mifsud shares her insights on how to make this seemingly-daunting task a reality.

As a parent it’s hard to know what’s around the corner for your children – as well as the costs that could come with it. They may dream of studying overseas, travelling to exciting destinations or buying their first home, and you may well want to help them achieve that.

“Parents often struggle with the juggling act that comes from simultaneously managing monthly finances, while also trying to put money aside for the future,” says Joann Mifsud, FCM Bank’s Operations Manager, who is also a mother herself. “We know that we should have a pot of money put aside to help our children out for the long-term but achieving that can be difficult.”

It is also important to keep tabs on daily spending, as it is easy for little outgoings to add up. “When you have children, spending opportunities present themselves at every step,” says Joann. “Technology is constantly being updated, and children always want the latest gadget or toy to add to their collection; every trip out can lead to requests for you to buy them something new.

“I think it’s important to discipline yourself, and to teach them to save up for the items they really want. You can encourage them to put some of their pocket money aside each week and to focus on a goal, such as having money to take with them on holiday, or to buy a particular item they have wanted for a long time. This will show them that it pays to wait to get something special, rather than to spend money frivolously at every opportunity.”

Joann believes that it is never too soon to start talking to children about money and saving.“You can explain the cost of groceries to your little one as you walk around the supermarket and, as they get older, discuss the electricity bill so that they start to develop an understanding of costs they may not otherwise consider.”

Finally Joann suggests that parents explain banking in simple terms to their children, and to encourage them to put some money aside themselves. Good habits introduced early will help build responsible savings.

“This can also be an opportunity to explain how interest is calculated and the benefits of long-term savings goals, and will also help you to save a little each month for whatever exciting things their future will bring!”