How to save money for your child’s future. The security of a child is the ultimate goal of every parent, as such the need to secure the financial future of a child/children, in a turbulent economy. This could be geared towards education and being financially free in the future.
However, for the purpose of this article, I’m committed to teaching and showing you how best you can achieve this, to further enhance a healthy financial future of your children in later years to come.
I find it imperative to admonish parents to take this adventure seriously as it has hampered the financial future of so many children, who end up suffering untold hardship either because their parents could not afford to pay their school fees and meet up with their basic financial needs in advance stage.
HOW DO YOU THEN SAVE MONEY FOR YOUR CHILD’S FUTURE?
1 You can actually set up a pension fund to save money for your child’s future. Yes I mean pension fund, you see pension is not meant just for people who are working and saving for retirement, you can imbibe this culture and save towards growth, development and financial security of your baby, this fund will be used when the baby grew up and starred with financial demands.
Be it a working class or business fellow, you can actually commence aggressive savings campaign through pension savings. In Nigeria we have a list of credible Pension Fund Administrators who you can approach for this purpose, all you are required to do is provide bio details and possibly passport photograph of your baby then you are off to a wining start. You contribute a monthly premium depending on your desired package.
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You may have to contact any of the following Pension Fund Administrators:
ARM Pension: ARM has been one of the leading Pension Administrators in Nigeria. E-mail: email@example.comHot lines: 07080635200, 07002255276. Head office is located at 5, Mekunwen Roadoff Oyinkan Abayomi Drive, Ikoyi Lagos. They can send any of their representatives to interface with you in your desired location.
Legacy Pension:www.legacypension.comcontact: 08166497001, e-mail:firstname.lastname@example.org, 08059580002, 08032752888. Office address: Plot 207, Maimalari Street, Cadastra Business District 900211, Abuja, Nigeria. They have offices closer to your destination with a wide range of representatives who can help kick start your dreams.
You can as well checkout Lead way Pension, Oak Pension etc
2 You will really need to consider life insurance, to save money for child’s future. This is one thing many will not like to associate with, but you cannot take away the fact that human beings are liable to death, its time you start living with reality than deceive yourself. I am not saying you will die, but that as well is inevitable someday.
By investing in life insurance your child/children will have something to fall back to per-adventure you are gone. What’s the essence of controlling money without saving for the unforeseen? I hereby challenge you to reach to an insurance company and start contributing your premium for life insurance. That way your offspring will have a better future.
3 You may have to seek out scholarship opportunities and save money for your child’s future. There are so many scholarship opportunities out there your child can leverage on, your child should start applying while getting equipped for tests that could be a criteria to accessing the opportunity.
Have you cared to imagine a scenario whereby your child acquires education without you contributing your own fund, that can be so crazy and amazingly overwhelming.
I know the story of a little boy who comes from a very poor background, but the dude is a genius. He outshined fellow students at the end of each term with an intimidating gap in overall performance. It got to a point the school authority through the Principal presented the young boy to the State government. After some tests, the boy was offered scholarship to further complete his studies abroad. This is the power of scholarship grant.
4 Open kids savings account with a commercial bank of your choice and save money for your child’s future. Doing this is a good way of teaching your child financial literacy, indeed little drop of water make a mighty ocean. Start early even from birth, save, save and save to give your child a deserved future void of financial stress.
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Here are some of the packages you may have to consider with the Nigerian commercial banks for this purpose.
SKYE BANK: Skye bank has one of the best savings account for children called “Skye Rainbow account.” To open this account for your child, you will need a passport for you and the baby, your ID card and a utility bill. You are expected to be a signatory to the account until the baby grows into adulthood. Initial opening balance for this account is N1000. Embrace this and save money for your child’s future.
ACCESS BANK: Access Bank operates the ”Early Savers Account for children.” This is a savings account for children below the age of 16 years including unborn children. The account can be open in trust for a child by the parent/guardian who will be the primary account holder with responsibility of running this account until the child attends adulthood and can solely operate their own account.
Features: Opening balance of N1000, Minimum daily balance of N1000, you can deposit dividend warrants of up to N10000, but no card services is allowed on this account.
BENEFITS: You can access the child’s school fees in advance. You will need the passport picture of the child and yours, utility bill, birth certificate of the baby and a valid ID card of the parent.
FIRST BANK: Put your children on their way to financial independence with the “KidsFirst savings account.” This account is for children between the ages of 0 to 12. The minimum operating balance is N1000, the account will transit automatically when the child is 13, Check/ Dividend warrant of up to N2m can be paid into the account.
GTBank: This bank offers “Smart Kids Save account.” This allow parents to save for their children from age 0 to 17 years. While also developing savings culture in them, teaching children the value of savings early in life.
DIAMOND BANK: Start saving for your children today with the “Diamond Future account” this account offers a guided structured plan with the added flexibility of saving varied amount on a monthly basis. It has an initial opening balance of N1000. These are actually actionable ways you can save money for your child’s future. Start today and give your child a deserved future.
Do you have any opinion, suggestions or questions, kindly use the comment box below and we will get back to you.
Raphael is a seasoned and dynamic writer, with interest in Banking, personal finance, entrepreneurial development. A councillor and motivational speaker.