Savings Techniques for Children in inexperienced parents styles, which is the best?

It’s said that it costs a lot of money to raise a child. It requires a large amount of money till it is a saying “Raising a child can cause parents to be poor for 20 years” Therefore, it is important to have a good financial plan for your children. The first-time parents should start planning to save money early for their children’s healthy financial future. There are a lot of savings techniques but which one best suits you?  Follow ACU PAY.

1. Set goals and plan before you save money for your child

Before starting saving for your child, parents must know the purpose and set a goal to plan saving for their children. For example;

  • Plan for all your child’s school life
  • Plan throughout your child’s studying life
  • Plan your own finance
  • Plan for when you have gone
  • Plan for your child’s emergency health

After that, consider how much savings will be required within the next few years. For example, it is expected that within 10 years, you will save at least 500,000 baht per month for your children to spend during emergencies which means that you have to have savings of at least 2,000 baht monthly. When it reaches a year, there will be 42,000 baht in savings and 504,000 baht in 10 years. The number may be adjusted according to the strength of each family.

2. Saving for your child on a fixed deposit which is easy to withdraw, and has low risk

Fixed deposit is one of the alternatives many new parents choose to save money for their children because it is easy and low-risk. They also can practice deposit discipline every month.

For example, deposit money in a fixed deposit account to pay for their children’s tuition that can be withdrawn at the end of 3 months, 6 months, or 1 year. If you choose to open a 3-month fixed deposit account, it will meet the end of the semester, or if you choose a one-year term, it will meet the end of the school year.

It is recommended to choose a tax-free fixed deposit because not only do you not pay interest tax, but you also get higher interest rates than regular deposits.

3. Savings for your child with Endowment Insurance

It is suitable for long-term savings, from young age to university life for your child and it is a good option to save money by using Endowment Insurance because it is designed for savings for future usage. When you send out your insurance premiums, you will get your money back from the insurance.

In case of death during the premium payment period, your agents will receive that money, protect your lives, and ensure your children’s safety even when you are gone.

4.Savings for your child with investment and debentures

Buying a debenture under the name of a parent is a relatively stable and safe way to save money for their children. We will earn interest every six months and have full principal if the debenture matures. 

By purchasing the debentures, we will be ‘creditors’ of the debentures. The issuer must pay interest as agreed throughout the maturity period and repay the principal at maturity from 3 years 5 years 7 years.


That’s it and you needn’t have to worry about the future of your children. It is recommended that new parents choose a savings method to suit their savings goals and the length of time they spend. No matter how you save, it will work.

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