Tips for Adjusting Your Budget to Save for Grandchildren

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Tips for Adjusting Your Budget to Save for Grandchildren

Posted on: in [ Budgets, Saving money ]

Learning that you’re going to be a grandparent – whether it’s for the first time of the 15th – is a joyous moment. It can also bring additional saving opportunities. A few simple changes to your budget can allow you to save for grandchildren and celebrate your grandchild’s milestones the way you envision.

There are many ways you can give to your grandchildren that won’t stretch your budget too thin. Consider giving them your time. Children need attention, and spending time with grandparents can fulfill that need. Making sure you have the money to spend on special occasions like birthdays, Christmas, graduations and other events requires changing your budget. Consider these tips:

  1. Determine which milestones you want to save for. On an annual basis, list out which milestones your grandchildren will achieve that year, and assign an amount you want to save for each one.
  2. Save ahead. Take the amount from Step 1 and divide it by 12. This will tell you how much you need to set aside each month to have the funds available for each milestone. Plug that amount into your monthly budget.
  3. Keep the money separate. Consider opening a separate savings account at FTSB, strictly for the money you are saving to spend on gifts to grandchildren. Keeping that money in a separate account will help meet your savings goals.
  4. Repeat. Each year, adjust your budget by going through Steps 1-3 again. If you have new grandchildren in a given year, or there are new milestones a grandchild may achieve that year, you may want to set more money aside.

These tips are provided by the Iowa Bankers Association.