When your kids are little, it’s all nappies, night feeds, and wondering if it’s acceptable to reheat your coffee for the fifth time. Long-term savings goals might feel like something for Future You to deal with. But while they’re still toddling around in dinosaur pyjamas, it’s the perfect time to start tucking money aside for some of the big-ticket items lurking just around the corner. Because let’s be honest, they’ll go from car seats to car keys alarmingly fast, and your bank account might need a head start.
1. University (Or Whatever Learning Looks Like by Then)
Maybe your kid will be the next Nobel Prize-winning scientist. Maybe they’ll decide to take up underwater welding in Sweden. Either way, higher education, or just education beyond GCSEs, is not cheap. University tuition, living expenses, laptops, books, takeaway pizza... it adds up. Even if they skip uni and go the apprenticeship route, there’ll still be costs. Start a savings pot now. Future You will be smug and prepared instead of shocked and under-caffeinated.
2. First Car Expenses
Getting a licence is a rite of passage. Paying for everything that comes with it is a financial rite of terror. A clunky used car is one thing, but young driver car insurance is where the real pain lives. It’s notoriously expensive, even if your teen promises they’ll drive like a saint, although you can get the best deals at the link above. Starting a savings fund for their first wheels means you’re not forced to sell a kidney when they turn seventeen and start quoting car prices at you.
3. Extracurriculars That Eat Your Budget Alive
Right now it’s £3 for toddler dance class and a pair of glittery shoes. In a few years, it’ll be £300 for music lessons, football camp, or some niche martial art they saw on YouTube. Whether it’s ballet, drums, fencing, or competitive chess, hobbies can get wildly expensive fast. Having a little nest egg ready means you can say yes to the things they love, without sobbing into your online banking app.
4. Big Birthdays (And the Parties That Come With Them)
You think you’ll keep it simple, but somehow birthday parties spiral into something involving rented bouncy castles, personalised cake toppers, and enough snacks to feed a village. Then there’s the sweet sixteen, the big eighteen, and the “Oh no, this needs to look good on Instagram” twenty-first. Having a bit stashed away takes the pressure off when the party expectations start to climb.
5. Grown-Up Starter Packs
Eventually, they’ll move out. Probably. Maybe. One day. When that moment comes, you’ll want to help them get set up without completely emptying your emergency fund. Whether it’s a deposit for a flat, some furniture, or just a decent kettle and a stack of towels, having a savings cushion means you can send them off without silently wondering if you should move in with them to protect the crockery.
Bringing up kids is not cheap, and that’s an understatement, so the more of the important stuff you can save for when they are small, the easier it will be to meet their needs, and cover those unexpected costs too. The early bird and all that…