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Nowadays it’s very important to start saving money for children as early as possible. You should think about saving for child’s education and financial future even when you are only expecting for him or her.
You may think that it’s too early, and it can wait for some years, but saving for your child has the same principle as saving for your retirement, the earlier you begin saving, the better off you both will be. For example putting away $100 a month from your child’s birth to age eighteen will give you approximately $35,000. Wait until age 5 to start, you’ll have to lay aside $165 every month to reach the same amount. If you start saving 10 years later, you’ll have to save $300 each month to get to thirty-five thousand.

You should think of college tuition when planning financial future of your child. College graduates earn much more money than people with a high school diploma. You can use special education-savings plans or general plans. Using them you will meet your financial goals as soon as possible.

Opening a savings account that your child can eventually contribute to is a good idea. It will save some money when child go off to college, besides child learns how to control spending money. He or she will grow into a responsible, financially stable adult.

Knowledgeable parent can begin investing in stocks with a child at around age ten. Child can pick some companies and get annual reports from them. Then together you can whittle down the list to three companies, better in different categories. With your help a child will learn how to earn with stocks from their favorite food or drink, a toymaker and a technology company.

You should understand how important is to start saving early. You can begin with few dollars a month. Moreover it will be a good opportunity for you to assess your own savings situation. The better you save for yourself, the better and effective you will save for your child.