Raising children in Sydney’s Northern Beaches is an exciting experience that has been moving at a quick pace with the whole family from the time the parents were sleep deprived with the newborns to the current routine of school drop-offs and weekend sports. However, one thing that is frequently hidden under the pile of tasks is financial planning for the future—which most times is relegated to setting aside money for the children’s future.
If you’re trying to save up for things like school or just want to give your kid a head start when they’re older, it’s best to start saving as soon as you can. The cool thing is, you don’t have to be some kind of money guru to make good choices with your cash.
Below are simple, practical ways that mums (and dads!) from the Northern Beaches can easily start putting money aside for their children—regardless of their life stage.
1. Start with a Dedicated Savings Goal
First things first: determining what you will be saving for. Is it the tuition of the high school? A car at the age of 18? The deposit for the first home? By having a definite goal you become more motivated and concentrated. In case your goal varies, just having a distinct savings account for your child could still be quite impactful.
2. Automate Your Savings
Living with children is quite a busy and hectic life. One of the best methods to keep your savings on track is by automating them. Make a weekly or monthly automatic transfer from your checking account to a savings account that you have opened separately, even if the amount is $20. Over time, those small amounts really add up.
3. Consider a Term Deposit Savings Account
If you’re looking for a safe and reliable way to grow your savings, a term deposit savings account might be the ideal choice for you. With a term deposit, you are essentially agreeing to not withdraw your funds for a specific period ranging from a few months to a few years and receiving a fixed interest rate for the term.
It’s a really good pick for parents who want to save safely, without any market worries. Also, it helps build good saving habits since you’re less likely to spend the money.
Since lots of banks have good rates these days, it’s a good idea to invest around in 2025. A term deposit might be just what you need if you’re saving for things like school fees or college.
4. Get the Whole Family Involved
Saving for your kid’s future is not necessarily a one-man show. Relatives such as grandparents may be happy to give money for the child’s birthday or Christmas instead of giving more toys. Moreover, the sooner the child gets to learn about the value of money, the more money-wise he will be in the future.
5. Review and Adjust Each Year
With the growth of your child, your family’s needs will also change. Try to be consistent and schedule annually a ‘check-up’ on your savings goals. This can be done after the tax season or before the commencement of the new school year. It also allows for a raise in contributions or the possibility of finding a better saving option like transferring to a new term deposit that offers a better rate of interest.