When I had my first daughter I wanted to give her the world. I immediately started thinking of things like her college education and the day she’d be driving age.
I know the power of saving little amounts over the long run produces dynamic results, so I started to think about how I could painlessly save for her college education and her first vehicle.
When my first daughter turned one I had my light bulb idea and came up with the way that I would painlessly save for a car for her. A lot of other people I’ve told about this liked the idea too so here’s how it goes.
You save one dollar per week for every year you child is. (Example, you have a two year old so you put back two dollars per week. You have a fifteen year old so you put back 15 dollars per week.)
In theory the more time that goes by the more money you’ll be making. And, by adding only one dollar per week each year to the amount you save, the actually saving of the money should be quite painless.
Keep in mind though this will not be enough money to buy a brand new car. It will be enough money to buy a decent car. And, personally, I don’t think that young drivers should have brand new cars. They should have to prove their responsibility and start out with a reliable, used, and maybe not so flattering first car.
Here’s how this would work out if you saved from the time your child was 1 to 15:
Amount Per Week
Amount Saved in a Year
That painless saving will net you with $6,258 by the time your child turns 16. An easy way to save right? And, you could use this method is so many other ways that just saving up to purchase a new car. If you’re living on a bare bones budget and feel like you have nothing to save, try starting with one dollar a week and build up momentum from there.
What do you guys think? If you’re a parent do you find yourself thinking of saving for your child’s future often?