How to prepare for their future?
The greatest gift you can give your children isn't money. It's opportunity.
You should see saving for your children in the form of education and other important aspects that will aid them in their life when they are older.
For instance when it comes to education, every parent wants their child to have the best education. But many people delay facing this mammoth responsibility until it comes.
Two core principles to saving for children:
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Start early
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Make it regular
These will give you a good start.
Besides education, you might be asking yourself: "What do I want to save for? "
You may have several goals. In which case, you should work out what each will need, and by when. Simple research will tell you that a three-year degree at a good UK university costs AED 150,000. Likewise a wedding in the UAE costs AED 300,000 and AED 500,000 (2012 Gulf News survey).
One you have your goals set in place, you just need to make sure you are saving enough to achieve them.
A chart like this can help:
GOAL |
HOW MUCH WILL I NEED? |
HOW MUCH TIME DO I HAVE TO SAVE FOR IT? |
HOW MUCH DO I NEED TO SAVE EVERY MONTH? |
University Fund |
AED 200,000 |
20 |
AED 830 |
First Car |
AED 97,000 |
16 |
AED 340 |
Cash Gift |
AED 36,000 |
17 |
AED 295 |
Now whether you want to put all your savings in one place or divide them accordingly, an ADIB advisor will be able to help you with that.