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Before you plan to have children, preparation for their financial needs seems easy. You visualize about how you will open their first account, teach them all the tips and tricks of saving money right from the age of 2, and imagine that they will be financially independent by the age of 15. But then the bubble bursts, you go ahead and have a kid and realize how expensive it’s to raise a child. Your planning and budgeting skills require an upgrade and you start wondering as to when should you open a savings account for your kid, the answer to that depends on the end goal of the account.
Savings for education is a must and for this you need the most amount of time possible. Compounding interest is on your side, ensure that you open a savings account as soon as the baby is born. An important lesson while saving for your kid’s education is to start early and make systematic deposits into the account.
There are several ways that you can help your kids with long-term savings, and most of those depend on if your children will be contributing by putting any money into the savings account. One of the greatest gifts you can give your child is a whole life insurance policy. Most banks and companies will issue these long-term saving options any time after the child is 30 days old, it also helps to choose a company that is financially strong as it ensures maximum growth.
All of the would-be parents and the ones that are planning for a kid wonder about when to open a savings account for their child. The right answer is as soon as they are born. Be smart and make systematic deposits to avail the maximum benefits.
Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.