A little saving for your children’s future starting when they are born can go a long way when they grow up. This can assist them with one of the most important things in their life – education.
Saving a 100$ a month can give your children an important edge when they reach university. Considering how expensive the education is getting, your savings today can relieve the pressure form your children tomorrow when they are fresh in their careers.
Now saving a 100$ a month today may feel difficult but all you need to do is change your habits a bit. First few months may be difficult but as you continue it will become easier. Further if you are unable to afford 100$ a month then start by a little but it is important to get started. Here are a few ways to achieve this
An easy way is to create a sub account with your bank under your main account and put an automation on your main account to transfer 100$ (or less) to it every month. As you grow in your career you may wish to increase this amount so that your children can have more when they need it.
No matter what happens never take money out of this account always remember that this is for your children’s future.
Account for children
An other practical way is to open a savings account for your child (or accounts for children). More details and obligations in regards to this can be found on the ATO’s website. Please note that children or minors can only earn a small amount of income before they are taxed.
Family trust may also be be a good option to save if you have a large sum of money available. For this you will need specialist financial advice and there are administration costs, a family trust can help you to legitimately distribute investment income and take advantage of lower marginal tax rates for certain members of the family.