When it comes to your savings, parents have a lot of heavy lifting to do! Raising children is one of the most expensive things in the world to do, and that means your days will be filled with penny pinching, bargain hunting, and making sure there’s a well built rainy day fund somewhere.
That’s why it’s essential to have a savings goal. Just how much money will you need for the future? How much spare cash will you need to make sure you can cope with an emergency, and then maybe another one not long after that?
If you can put together a savings plan specific to your life, you’ll have a much clearer idea of how big your rainy day fund needs to be.
Save According to Your Current Expenses
How much are you spending per month right now? That’s the amount that should guide your savings. Whatever it is that’s going out, try to make sure you’re putting away around the same amount as frequently as possible too.
This way you can be sure you’re covered in case anything happens to your regular income, or you have to pay out your usual expenses from your savings account because your money is tied up elsewhere.
This is a great basic rule to follow at any time, and it’ll help you to stay on top of money worries as time goes on. After all, you’ll have more and more cash stowed away and interest working on top of it too.
How Much Do You Want to Give the Kids?
It’s normal for parents to pay for the things their kids need, usually up to the age of 18 when they’re responsible for themselves.
But there are still a few things that you can help stump up the cost for past this age, such as their first car or university fund. In terms of the latter, the amount you should save depends on how much you bring in, due to the means testing involved in determining how much of a loan each student gets.
Think About Care Needs as You Get Older
As you get older, there’s going to come times when you’ll need a bit of help. You’ve got your kids and you’re sure you’re going to be able to depend on them one day, but at the same time it’s common for parents to worry about becoming a burden in the future. Even thinking about the kids hiring funeral directors one day can put a lot of stress on your shoulders.
That’s why you should consider your future care needs from day one. Saving up for home care might seem unnecessary or a far off thing, but there’s every chance you’ll need the specialised help. And remember, your children are going to want to give you the best send off possible and they’ll need funds for it, so start saving as early as possible!
Saving for the future? Have a goal and make it easier!
The Coastal Mummy 