When I went to university, it was basically free; I did not have to pay tuition fees, living and accommodation costs were also significantly lower.
When my children go to university, which I hope they will, they will have to think about it financially.
It wont be a simple decision of: “Shall I continue studying”? “Shall I go travelling first?” “Should I look for work?” But more a question of: “Can I afford to go to university?”
And of course, even if they decide they don’t want to go university, whatever it is they want to do will no doubt come at a significant cost.
As a parent with two very young boys, I see it as my duty to save for their future and like any other parent, I don’t want them to grow up spending their first years as a young adult struggling with money. It’s a horrible way to start adulthood and it can put you in a spiral of never ending debt. I want better than that for them.
A junior ISA can really help you build that future for your children. Just putting away £31 a week into an investment junior ISA as soon as your child is born can give them £41,886.00 by the time they are 18.
And if you can increase it to £78.46 a week, you could provide your child with a savings pot worth £106,208.07, according to calculations by Fidelity International.
Now, it really is as simple as that. Ok, so I hear you when you say that you don’t necessarily have that much to put aside each week.
It doesn’t have to be as much as that, just £10 a week could still give your child a good headstart.
If you wanted to, you could find that extra £10 to stash away.
Here are some of my top tips to put extra cash in your pocket each week:
1) Ditch the morning coffee. A visit to the barista on your way to work can set you back by around £2. That’s £10 a week!
2) Take lunch from home. Buying lunch can set you back around £5 a day (or more), so time to get organised and take packed lunches. This can be sandwiches or left over dinner. You’ll be healthier for it too.
3) Ditch the brands. I don’t just mean just for groceries, but also for things like medicines. Own brands are significantly cheaper and do the same job. Take for example, Calpol Six Plus is £3.65 in Boots, but its own brand is just £2.89. Anadin paracetamol ay £1.25, but Boots’ own brand is just 49p – and it can be found for as little as 26p for the same amount at supermarkets.
4) Walk more. Sometimes it is too easy to take the car, but try and walk more if you can. You’ll be surprised at just how much your petrol costs will drop by.
5) Switch your energy provider!! This could save you £200 a year.
6) Do not renew insurance policies. If your car or home insurance is up for renewal, then shop around for a new one or haggle for a price match. Insurance providers do not care about loyalty, so when your policy is up for renewal, you can be sure the price is significantly higher, so move on.
7) De-clutter your life. Get rid of what you don’t need. Sell it on Facebook (see your local selling group page), ebay or go along to a car boot sale and flog your stuff. Find your nearest boot sale at Car Boot Junction.
These are just some ways to put the extra cash in your pocket! Saving doesn’t have to be difficult, but it does mean being strict with spending and taking time out to put your finances in order.
It may just take an hour or so to get everything in order, but it could make a big difference to your child’s financial future.
If you want to know more about junior ISAs, what are the different types of ISAs, which junior ISAs are the best and how junior ISAs work, then visit my junior ISA page here where I also list the latest rates and my pick of the top providers. Scroll for video.
Keep up-to-date with me on Facebook and Twitter @KalpanaFitz and @MumMoneyMatters
Visit my Junior ISA page here