How to Save for Your Child's Future
Having children can be one of the most fulfilling, inspiring, emotional, and expensive aspects of your life. Studies have found that the cost of raising a child to the age of 17 is approximately $233,610. If you think that sounds like a lot, according to CNBC a bachelors degree at a private university will cost $303,000 in 18 years.
These numbers can be worrying, especially when you’re not sure where to start saving for your little loved ones. Fortunately, USMFCU has your back with these tips on saving money for the most important and smallest people in your life:
Open a youth account
Ditch the piggy bank and open a youth account for your child. It’s never too early to start saving and opening up an account like this as early as possible will allow you to keep a close eye on your journey to giving your child the head start they deserve. CD’s will also pay you interest the more money that you save! USMFCU offers youth accounts and is dedicated to helping you and your family. If you open up a youth account today parents will receive $25 and an extra $25 when they open up a CD for their child. Learn more.
Sell what they outgrow
When people say “they grow up so fast” they aren’t kidding, and that means that many of the things you buy for them will be outgrown. Luckily for you though, they don’t have to go to waste! There are many great websites and platforms to sell these outgrown items including Offerup.com. According to OfferUp there are specific times of the year where parents will get more out of what they sell:
Crib: If you sell your crib in March, you can earn 30 percent more than if you sold it in December.
Stroller: Because more babies are born in July and August, necessary items, like strollers, are in high demand in June, earning you 10 percent more than any other month.
Snow Gear: October, right before the snowy weather begins, is the best time to sell your snow gear. You could earn $110 in October versus $90 in November.
All this newly earned money can go right into your savings for your child!
Set up automatic deductions
Whether you send the funds to a youth account or any other savings account, setting up automatic deductions from your paycheck is an easy, automatic way to plan for your child’s future. All you have to do is work with your employer to deduct any amount that you decide to put away every paycheck. One of the best things about this is that you can always adjust this number, so if times are tight you can lower the amount, but when you’re able to save more you can raise it!
Cook with your children
This one may seem confusing at first but hear us out! The average American household spends about $3,000 a year dining out. If you can cut that down by even half, that’s $25,500 in savings in 17 years! Moreover, the best way to get your children to eat homecooked meals is by involving them in the process according to the New York Times. Doing this will also help set them up for good eating AND spending habits as they progress through the years, and it’ll help you save for all their expenses. That’s a win-win!
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