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Savings for Children
Saving for your children's future is an important way to prepare them for adulthood. Whether they need some money for their first car, a first apartment or for college tuition, having a nest egg can come in quite handy. The best time to initiate savings for your children is at birth. There are many ways parents in the U.K. can prepare their children to begin their adult lives in a good financial state.
The easiest way to get started saving for your children's future, is to initiate a savings account in his or her name. This is one of the best ways to start putting money aside for their future. Savings accounts are very helpful, because the interest paid on the balances can really accrue nicely over the course of the 18 or so years of childhood. When choosing a savings account, it is helpful to do some research. Numerous financial institutions offer a variety of services. Doing research will help you make sure you get the highest interest rate for your child, and you may even receive a promotional offer in the form of a few pounds.
Many financial institutions also offer investment accounts, also known as custodial accounts, which allow parents and relatives to purchase stocks for their children. This can be a very powerful savings tool for children, as the return on equity and dividend payments often outperform a savings account. Children are usually able to access these accounts when they turn 18 years of age, allowing them to have a strong nest egg to use to pay off expenses, which will come up on them. Research is also important in choosing a reliable financial institution to hold your child's assets. Making sure the company has a long history of good customer service and low commissions can really add to the mental security that the money is safe.
These are only two of many ways that parents in the U.K. can take advantage of child savings services. Having a means of asset management will allow you to teach your child how to manage their money and keep it safe. Just as with these two forms of asset management, be sure to do your research before choosing a service to go with for your child. There really is no substitute for the comfort in knowing that the money you set aside for your children is safe.