As a parent there are a number of vital things that you plan for when your child is young. Things like, where they’ll attend school, what sports you’ll encourage them to play and even what musical instrument they’ll learn.
“The cost of raising a child has gone up significantly in recent years for Sri Lankans, spurred on by rising costs associated with every facet of our lives, from food, to transport, to tuition fees which means your savings may not be able to keep up with the rise in costs,” says Ms. Christina Wesley, a financial planner from NDB Wealth.
Yet there’s another big decision that if made when your child is young, can really get them off on the right foot.
Setting up a savings account for your child, and teaching them good financial habits early, are the simplest and easiest ways to ensure that your child is on track for a bright financial future. However, sometimes it can be difficult to know where to begin.
To help you secure your child’s future, expert financial planner NDB Wealth offers a real world solution for children’s savings, which far exceeds the minimal returns offered by traditional children’s savings accounts. Ms. Wesley is also quick to point out that savings plans offered by NDB Wealth puts rupees earned straight back into your child’s account, and not into the price of a ‘free’ toy or trip as promoted by traditional children’s savings accounts.
According to Ms. Wesley, “Parents should set up a savings account for their child as soon as they’re able to. Providing regular contributions of even just a small amount, can really add up over time and when your child is old enough, they can also contribute by saving their pocket money.”
The “Kids Saver” account from NDB Wealth is unique because it is designed to give you and your child what you truly need from a hardworking savings account. Comparatively higher rates of interest earn significant returns while your money can be withdrawn in emergencies without having to pay penalties.
“Encouraging your child to contribute to a savings account is an effective way to teach your child the value of money and foster good financial skills for later in life,” adds Ms. Wesley.
NDB Wealth also offers the following tips to help you ensure your child has a bright financial future: 1. Start teaching good money skills and habits as soon as possible. If children are taught what it means to be ‘money smart’ at an early age, you will be helping to set them up for life; 2. It is important to maintain a positive mindset about money with your children, which will help to build their confidence and ability to manage money effectively, into the future. Make a conscious decision as parents about what you want to teach your children; 3. Help children learn about balancing their ‘must haves’ as well as their wish lists in life. Teach them to set goals to achieve the things they want. Help them to plan, budget and save for their goals; 4. Providing pocket money teaches children to be responsible with money. Talk through the rules and expectations of what their pocket money is to be used for and when they will receive it.
Learn more at NDB Wealth’s website (ndbwealth.com), which also features a number of pre-designed, “Build your own plan” savings plans aimed at kids, women, families, retirement, etc.
Photo Caption – Ms. Christina Wesley, Financial Planner, NDB Wealth