Smart ways to save money for your children

save money for your children

*This is a guest post 

When you consider how much debt U.K. students are graduating with, it goes without saying that many of them will start their professional careers in a precarious financial situation.

One source notes not only that a typical degree at the undergraduate level in the U.K. takes three years to complete, but also that the average student debt load last year was £27,000. And that tally did not factor into the equation any maintenance loan repayment, if applicable. Adding tuition and maintenance loans increased the total debt to between £35,000 and £40,000.

The sad thing about the student debt situation is that it does not have to be so since parents can save money for their children’s post-secondary studies. In addition to giving them a running head start as it relates to future tuition costs, they can use this investment into their future as the springboard from which to teach their children financial literacy.

Check out the following ways that you can save money for your kids so that they can avoid debt.

Junior ISA

 A great way for you to save money for your children is a Junior ISA. Using this investment vehicle, you or other family members can, for the 2018/2019 tax year, save as much as £4,260. These types of accounts can hold cash or stocks. Children cannot access any money saved in a Junior ISA until they reach 18 years old, which is just about the time when many of them will be preparing to head off to college or university.

NS&I Premium Bonds

You can open NS&I premium bonds for your children, as long as they are younger than 16 years old. Rather than paying interest, the number affiliated with each bond is entered into a prize draw every month with prizes of between £25 and £1 million.

Children’s Savings Account

Are you looking for a great way not only to save money for your children, but also to allow your children to save money for themselves as well? One way to to this is to open dedicating savings accounts for your little ones. You can save for them and then encourage them to save some of their allowance, earnings from part-time or odd jobs, and even money they get from relatives on their birthdays or other holidays. The goal is to sell them on the importance of saving a portion of whatever they earn so that they will eventually be in a position to afford the things they want in life — an education, a car, or a vacation — without having to take on debt. Financial literacy is an important skill that isn’t usually taught in the classroom, so you as the parent need to take the initiative to ensure that your children understand the importance of saving.

Invest in Diamonds

At a time when we have stocks, bonds, and savings accounts, the idea of saving for your children by investing in diamonds might seem a little outside of the box. And it is. But investing in diamonds, while not necessarily common among most of the general public, is a prudent strategy. Why is this? Well, diamonds are inflation-fighting commodities, according to Fusion Alternatives, a company that specializes in diamond investments. You don’t have to break the bank, either, to get started. It’s generally recommended that you start off modestly by buying a diamond with one to five carats. In order to ensure that you pay what it’s worth, you should only buy certified diamonds. Of, course, you need to know where to buy diamonds for investment purposes. You can do so via online diamond retailers as they, among other things, offer the most reasonable prices due to their minimal overhead costs.

Saving for your children is a necessity if you want to help them avoid debt. By using these recommendations to save money for your children, you can help teach them financial literacy as you give them the resources they will need to succeed well into the future.

Have you started saving money for your children? Which of the above methods do you use? Or perhaps you have some other tips to share? Please do leave a comment below. And if you found this post useful why not check out 5 tips for parents to save money  and 20 things you should do to save money.

Author Bio: Cassie Brewer is a health professional. In her free time, she enjoys writing about her passion (healthy living of course!) and everything beauty related. Nothing makes her happier than helping other be the best version of themselves they can be. You can read more at and follow her on twitter @Cassiembrewer.


One comment

  1. Great post Cassie, thank you! I think this brings about a lot of good points and frankly, I never even thought about investing in diamonds. All that said, I think it’s really important to also make kids work for their money and save some of it themselves. With the cost of education and the debt that graduates take on, understanding how to save seems like a very important skill.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.