A Personal Finance Expert has released eight ways in which parents can start to save now in order to help fund their child’s education later down the line.   

Education can be expensive. Thankfully, there are ways in which parents and students alike can get support with costs from the government, such as student loans, but it can still be a cause for concern for many. If you’re looking to put away a bit of money to support your child’s education later down the line, there are a number of things that you can do now to start to save.   
  
Dan Whittaker, Personal Finance Expert at Little-Loans.com, has released eight ways in which parents can save up to help fund their child’s education.   

Whether your child is planning on going to university next year, or you imagine they will years down the line, these tips will help to grow a small sum of money to put towards their higher education.   

University might seem like a long way off for many parents, but with a cost of living crisis affecting us all, it might be best to start saving little and often now, rather than stump up large sums later on. Have you given any thought to this? 

ISAs ad JISAs  

If you want to save a regular amount each month, consider opening a savings account designed for children. Junior ISAs are tax-free and so often offer the best interest rates. Junior ISAs have a maximum savings amount, so you’ll need to transfer the savings to another account when you hit that limit. 
  
Other ISAs have a more generous allowance but don’t allow the child any access until they are 18. Research the market and find the best option for you and shop around to see which banks offer the best rates.

Child Trust Funds  

 Children born between September 2002 and January 2011 instantly had a child trust fund opened for them. This was a government initiative but many parents didn’t take advantage of it. You can pay up to £9,000 into it a year, tax-free, so if your child is the right age, investigate whether you have a trust fund and use it to start saving.

Premium Bonds

Premium Bonds make a great gift for any occasion, and can also help kick start a healthy savings habit. Buy from just £25.

With the chance to win cash prizes ranging from £25 to £1 million every month, a boost to their savings is a gift they can enjoy again and again.

Investments

 If you’re comfortable with stocks and shares or willing to learn about them, then you could increase your child’s savings pot considerably. You can open investment accounts on behalf of your child or in your own name. The risks can be higher than with a normal savings account, but with most junior savings accounts having a maximum of 3% interest, the rewards can be much greater too. 

Do the Maths  

Before diligently saving every month, have a look at the estimated costs. Perhaps your child is planning on an apprenticeship and will need money for travel, resources and living arrangements, or maybe they plan on studying a long degree course such as medicine. Consider your own financial status as there are eligibility criteria for things like loans and grants that you may pass for, thus reducing how much you will need to save. Do your homework so you can check that you are saving the right amount.

Round Up  

Many bank accounts now offer a ‘round up’ option where you can round up your transactions to the nearest pound. The excess is then moved into a savings account. As it’s only pennies, you’re less likely to miss it and those very small amounts will add up. 

Birthdays and Christmas  

If your child often gets money from relatives for their birthday or Christmas, then why not suggest they enjoy spending some and then saving the rest in their savings account?   

 Not only will they learn about responsible budgeting early on, but they will be putting this into practice by saving for their own future. Hopefully, they will then keep saving when they are actually off on their own in the real world.

Paying their way  

 Some parents now ask their teenage children to contribute to household bills or rent. If your child is old enough and has a part time job, you could ask them for a small amount towards house expenses. Then you can put this money away into a savings account so that when they are ready for their next round of education or training, they have a nest egg they know nothing about, that they contributed to.  

 For younger children, ask them for help with household chores and then pro-rata their pocket money so they have some to have fun with and some to save. Every little helps and it’s good to get children involved and make them feel trusted with their own future.