With the myriad of responsibilities that a new parent faces, it can be easy to forget the importance of saving for your child’s future. But with an ageing population, expensive housing and more emphasis on personal provision in future, you could give your children an invaluable start in life.

The key is to decide how much risk you are willing to take on and how much control you want your children to have over their savings.

Children – a risky business?

• The nature of saving for your children’s future means that it is likely to be a long term investment and should therefore carry less risk as you can drip feed an amount over time and leave it to ride out any short term fluctuations in the markets.
• Shares are an attractive option for many parents as they offer greater potential returns over the life of your investment (often up to 18 years) than cash and you won’t have to worry about the short term variations in its value.
• If you are adverse to any risk where your children’s future is concerned then cash is probably the best option for you. Cash carries very little risk and as long as you don’t exceed the £50,000 that is protected under the savings guarantee with each provider.
• It is important to look for savings accounts with a higher interest in order to ensure that your investment rises with the rate of inflation but you should be able to find a variety of different options on the high street.

Saving for your children’s future should be on every Contractors agenda in the future and Danbro Financial Services can help you to set up a regular saving plan to make the most of your spare income.