Saving strategies every parent should know
Published:Saturday | June 28, 2025 | 12:10 AM
Saving isn’t just about stashing money away; it’s about making practical choices that can ease future financial pressure. With school fees climbing, inflation biting, and surprise costs always around the corner, parents need clear, effective ways to stretch their dollars.
Here are five expert-backed tips from Scotiabank to help parents plan wisely for their child’s financial future:
1. Build an emergency fund first
Parents should first build an emergency fund covering three to six months of living expenses to handle unexpected costs like medical bills or job loss. A high-yield savings account works well because it earns interest and keeps money easy to access. It’s best to keep this fund separate from other savings.
2. Start saving early
Opening a savings account for your child as early as possible allows funds to grow over time. Opt for accounts with high interest rates to maximise long-term growth. As children mature, recurring expenses such as education and healthcare increase, along with extracurricular activities, insurance, and other personal costs. Starting early ensures financial preparedness for these needs.
3. Get insurance and a will
Planning for the unexpected is essential. A life insurance policy can ensure financial security during the years a child is most vulnerable, providing well-needed funds in the unfortunate event that parents are no longer around to care for them. Though difficult to discuss, finalising a will is equally crucial as it ensures a structured financial plan to support a child's future.
4. Diversify investments for long-term growth
Beyond traditional savings, exploring diverse investment opportunities can significantly enhance financial security. Consider stocks, bonds, mutual funds or an education savings plan to help build wealth over time. Diversification minimises risk while creating avenues for financial growth. A financial advisor is key to helping you navigate the market and find investment solutions that suit your needs and risk appetite.
5. Teach your child about money early
Financial education is a lifelong skill that helps children thrive as young adults into adulthood. Understanding money management concepts such as budgeting, saving and responsible spending, empowers them to make informed financial decisions. Helping your child to learn more about money, savings and budgeting is a good place to start.