IMAGINE being able to give your child a £100,000 gift on their 18th birthday?
While this may seem like an empty dream, it may be achievable.
Sarah Tucker, founder and general manager mortgage motherannounced her top tips to help parents save money.
The money expert and mother of two said there are many different ways people save money — but there’s also a lot to think about.
She said: “After appearing on The Voice UK in 2019, I’ve used my platform to create a space for women in the mortgage industry.
“There are not enough women brokers and I believe the world needs it.
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“I have been a mortgage broker and money expert for six years and have found my way here by experimenting with money on my own blocks.
“People tend to think that mortgage brokers and financial service professionals ‘fix everything’, but we’ve learned from our own lessons and experience.
“Money is extremely emotional and can actually change your life. It can make things feel more difficult, and it can make them feel equally lighter and more joyful.
“I love helping people unblock money blocks, gain financial awareness and knowledge, and create more joy for themselves in the process!”
CeMAP Qualified Mortgage Broker has announced that some parents are looking to save £100,000 so they can buy a home for their child when they turn 18.
But he explained that the real estate market has had a lot to answer for in recent years, especially when it comes to first-time buyers.
He said some parents feel more pressure than ever to buy property for their children in the future.
Sarah said: “In recent years, it has become increasingly difficult for young first-time buyers to climb the real estate ladder without help from ‘Mom and Dad Bank’.
“For one, they need a substantial deposit! More than ever, we’ve seen parents gifting deposits to their children.
“Actually, if Mom and Dad Bank were a real mortgage lender, it would be in the top 10 in the UK. So the pressure is real!
“Personally, I feel we have the same responsibility to help our younger generation learn about money and mortgage mechanics as well as mindset. It’s all connected!”
If you want to save £100,000 for your child’s 18th birthday, it’s not as simple as saving £5,000 to £6,000 a year for 18 years, the money expert explained.
Sarah explained that inflation would kill the dream because what she could buy you or your children for £100,000 today would be very different than what she could buy in 18 years.
Money is extremely emotional and can actually change your life. It can make things feel more difficult, and it can make them feel equally lighter and more joyful.”
He suggested that your savings target should increase with inflation each year.
FIX YOUR OWN RELATIONSHIP WITH MONEY FIRST
Invest your time and energy in your own knowledge, because there’s no point in gifting cash without the right lessons to go with it, Sarah advised.
He said: “You ask yourself, ‘What is my relationship with money?’ ask. Complicated? Healthy?
“There are so many tools on the market to explore this because, to be honest, our relationship with money often mirrors our relationship with ourselves. It’s crazy how connected it is.”
START SMALL AND BE REALISTIC
Start small and be realistic, advise money expert. Sarah said parents can open a specific savings account and call it their ‘child’s first home’.
That way, every time they see it, it will reinforce the plan and motivate them to continue as they watch their pots grow.
He suggested that banks like Starling offer this facility. It’s a good idea to set short-term, medium-term, and long-term goals.
“LIFT LIKE YOU CREATED”
As your money grows, give a little more, said Sarah, founder of Mortgage Candle.
He said: “Do not give from an empty pot at your own expense. Grow your savings together!”
Sarah, consider investing your money in stocks and stocks or property.
He said: “A purchase for the property can prove to be an invaluable investment for your children’s future. You need a 25% deposit to get started, but it’s easier than people think.
“If you have £100 saved, you can invest on behalf of your children.
“Take the time to learn how to grow your pot of money in different ways, or invest in an expert to help you.”
“A purchase for property can prove to be an invaluable investment for your children’s future. You need a 25% deposit to get started, but it’s easier than people think.
While encouraging parents to keep an open mind, it doesn’t hurt to add some manifesting magic, Sarah said.
Parents can set daily reminders on their phones, set savings goals as passwords and screensavers, find ways to let the universe know what they want.
She said: “Keep reminding yourself of your goals in a way that doesn’t feel like hard work and believe it’s possible. Set your targets and use the law of attraction to add fuel to your fire!”
OPEN AN INSA
Advice Sarah, open an ISA and earn the best interest you can while your money grows.
He said: “And open the child ISAs too. You can also invest in a Lifetime ISA when you turn 18 and the Government will add a 25% bonus to your savings.
“This is also convenient to use when saving for retirement.”
CONSIDER PREMIUM BONDS
There will be no interest earned on premium bonds and instead you will enter a prize draw where you can win up to £1 million tax-free each month.
“This could be a fun way to save,” Sarah encouraged.
Mortgage Anne and money expert reiterated that education about money is just as important as money itself. Mortgage Anne believes schools should teach this.
Topics such as mortgage, money and mentality should be discussed from an early age.
“Simplify for them and involve them in the process. Don’t make money a taboo at home!
“I talk to my kids about investing their money. We explain this using the concept of Lego or McDonalds, which was taught to me by the great writer Will Rainey.
“I also talk to them about saving their money using the concept of money trees. They understand these concepts better than we do!
“If you can do that, when your kids get their money one day, they will (a) appreciate it and (b) know what to do with it!
“Finally, please take the pressure off. Your job as a parent is to love your child. To support them until they’re adults and equip them with the tools to safely explore the world.”
Sarah added that you can do this without saving £100,000 – instead encouraging families to learn money and grow together – and see where this journey takes you!
I talk to my kids about investing their money. We explain this using the concept of Lego or McDonalds, which was taught to me by the great writer Will Rainey.
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