Save for your children
Wed 01 Nov 2017
Do you have a child or grandchild who could benefit from a Police Mutual Children’s Bond?
Recent news headlines have made it clear that things are getting financially tougher for the younger generations, especially with stagnant wages and rising living costs. In this climate, many adults will be asking themselves ‘what can I do to give financial support to my child or grandchild?’
Opening a Children’s Bond account is one option. Undoubtedly a great gift, especially for Christmas, it will also provide you with the peace of
mind that by starting to save early and regularly on their behalf, you are making a positive contribution to their financial wellbeing in an ever-changing world.
The final payout of a Children’s Bond account is made directly to the young person. This gives them the freedom to decide how to use the money for their own future. Popular choices include putting it towards a university fund or vocational training, or investing in their independence through driving lessons or a first car.
The saving period is between 10 and 16 years depending on the child’s age. For example, if the plan starts on the child’s first birthday then it can pay out when they are 16. If the plan starts on the child’s eighth birthday then the plan can pay out when they are 18.
Leonie, 23 – a Police Mutual member’s granddaughter – was able to use her payout towards university and a car. She is hugely grateful to her grandparents as a result and now looks to them for savings advice. She says:
"When I received my payout I was so touched that they’d been looking after us all."
“My grandparents started Police Mutual Children’s Bonds for me, my sister and our cousins when we were little. They worked hard and used some of the money they earned to save for all of us.
“When I received my payout I was so touched that they’d been looking after us all. The timing was perfect as I was able to use some of the money to buy my first car and the rest went towards university. It enabled me to focus on studying, and I’m now a qualified teacher.
“I’m so grateful to them both and have even asked Nana for her tricks of the trade when it comes to saving. It’s made me want to take the right steps towards planning for my future.”
Five money tips for anyone with young family members
1. Think about the jobs they can do to earn pocket money
2. Encourage saving early with a piggy bank
3. Talk openly about the cost of goods like groceries
4. Get them to pay for small items in shops with cash
5. Take them to the bank to meet staff and interact with them
Choose between saving either £12.50 or £25 per month by Direct Debit to build a guaranteed lump sum with a Children’s Bond, with the potential for regular bonuses and a final bonus to be added.
Submit your application today to have an account up and running in time for Christmas. Or to find out more about how you could give a child in your family some financial independence later in life, call one of our dedicated advisors on 0345 88 22 999.
Your payout could be less than you have paid in, whether you save until the end of the term or cash in early. The minimum fixed term of the product is 10 years.
Police Mutual Assurance Society Limited is an incorporated friendly society authorised and regulated by the Prudential Regulation Authority and regulated by the Financial Conduct Authority. Registered office: Alexandra House, Queen Street, Lichfield, Staffordshire WS13 6QS.
Type of article: Articles
Category: Saving my money
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