When you’re a mom, it can be hard to save money. It seems like it’s bleeding out of you during the first couple of years of your child’s life; there is always something that they will want or need that will require you to part with cash. It’s just the way it goes, and it’s one of the few things in this life that will never change. Looking towards the future can be a terrifying prospect when you’re taking their needs into consideration – think college, travelling, vehicles and anything else they may need to get them on their way. So what can be done to make sure that you – and them – are financially prepared?
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Start a Trust Fund
Trust funds aren’t just for the kids of the rich and famous. The biggest expense with them is hiring an attorney to execute your wishes, but it’s important to remember that once you have placed any money or assets into a trust fund, they can’t be withdrawn again. This is probably why they are so associated with the rich – remember Logan Huntzberger’s Dad from Gilmore Girls? He could totally throw cash into a trust fund and forget about it without having to worry about running into any financial trouble. The majority of us can’t do that. There is another option – putting your money into a UGMA/UTMA Custodial Account can ensure that the money is going towards college or education, or you could look towards getting a Kiss Trust Fund which works on a lower income.
Lower Your Outgoings
You can lower how much you are paying out in many ways. Go through your direct debits online and see which ones are really necessary; keep your bills and tax payments but cut off any subscription services that you may have going on in the background. Take a look at your home and consider whether you need the space you have. If you know that you need to move for more space but can’t afford it, take a look at new-build mobile homes on offer to give you more room for your money. There are also some great budget calculators online that look at where most of your expenditure is going; the majority of them require you to save your receipts on a daily basis to input exactly what you’ve been spending to get an accurate analysis.
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Teach Them To Save
Teaching your children to save what they earn or are gifted is an invaluable life lesson. Childhood is one of the only times where you can get away with making a lot of mistakes, but this is one definitely needs to be learned from. It’s so easy to replace or give money over when they overspend or misplace what they have, but the earlier they realise that this isn’t how they can operate in the adult world, the better chance they have. Show them the importance of saving by making them gather their pennies together for something that they really want – perhaps a new game or a toy. The feeling of satisfaction of earning something rather than having it given to them will override any previous unhappy feelings.
