Financial Planning – Saving For Children’s Aspirations

A common saying in Nigeria is “it is God that takes care of children” or “God is in control“. For these reasons some people have more children than they have the capacity to take care of. Or do not make proactive future plans for the children.  Yes God does take care of children but through the parents.

The rapid increase in prices in Nigeria is clear to all, including the high-income earners. Nevertheless, ambitious parents continue to aspire for great futures for their kids. Of course, present actions of the parents determine the realities of these aspirations.

Parents want their kids to attend the best schools within or outside the country. The very strategic parents ensure their kids have meaningful exposures and engagements. These cost money, a lot more money when you have to convert from Naira to other currencies.

Getting bulk money to meet these expenditures is difficult for a lot of people. Not having all the money may mean letting go of these aspirations and settling for the second best. Or worse, only what is affordable.

So how do you hold onto your dreams and aspirations for your kids in the face of a quickly eroding purchasing power??

Be a proactive parent and SAVE! SAVE!! SAVE!!!

  • Start saving towards your aspirations for your kids long before the need arises. Be it to study at an ivy league school, a high-end fashion school in Milan, or to go for the Olympics.
  • Open a savings account for your child, as soon as your baby is born and has a birth certificate. So many banks offer this service, talk to your bank to guide you
  • Deposit all financial gifts for children from their birth into their accounts
  • Make a commitment to deposit a percentage of your income to the account periodically.

Consider this, if you don’t consciously save the money, you sometimes cannot tell what you spent it on. Other times, years after, you realize what you spent the money on doesn’t seem so important anymore.

  • When you have saved a substantial sum, invest in options with yields that are at least above the inflation rate. Always consider the risk associated with each investment. Whatever you invest in, ensure you do not lose your capital. Financial instruments such as Treasury Bills are some of the least risky investments. It is imperative that you understand what you invest in, thus get advice from an expert.
  • Continue saving and investing. Watch your children’s investment grow

Money saved can make the difference between whose aspirations get fulfilled and whose doesn’t. It also helps to reduce the financial burden when it’s time to spend.

One interesting thing about saving is, you soon become excited about your ability to save and how much you can save.

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