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Helping your kids save and prepare for the time of their life

7th August 2014 Print

To help with any features you are writing on students and gap years, here are some top tips from Julie Hutchinson, Family Finance Expert at Standard Life, on saving and preparing for your teen’s big trip.

Save for the big trip It’s a great chance to help your kids learn how to save towards a goal and then to set a budget – these are key life skills that will stand them in really good stead when they start university or work too

Set a budget - Encourage your child to set a daily budget for travel, food and accommodation, in addition to bigger costs like flights

Reviewing finances - Help make sure your child has mobile banking set up, so they can manage their money on the go. Mobile banking also makes it easy for them to tell their bank where they are, so their account isn’t suspended while they are spending abroad

Use prepaid cards - To save carrying cash around and help prevent ID theft too, consider loading up a prepaid card. There are special ones for travelling that can help to keep costs down and let you top up and check your balance online, or sometimes through SMS and mobile too

Have their banking details - Remember to have your child’s banking details set up on your account, so you can transfer money if there is an emergency

Do they have everything they need? - Check passports are up to date and remind them to apply for any visas they might need well in advance, so there are no last minute panic or extra fees for an express service

Keeping in touch and checking up - You’ll want to make sure you can keep in touch while your teen is away. It can be very expensive calling abroad, so it might make sense to buy a new mobile sim in the country they are travelling to

Use mobile apps to communicate to save the pennies - Apps like Skype, FaceTime, WhatsApp and Viber can help fellow users communicate for free or at a reduced cost when on the go. Make sure to test drive these before they head off, to make sure they are working and you both understand the technology too

Packing light – As difficult as it is, encourage your child to pack light and to think twice about making heavy purchases while away to avoid getting any frights at check in. Remember, if they do want to buy things, then it could be cheaper to mail things back than pay for a higher luggage allowance

Travel insurance – Check out gap year travel insurance online to find the best deal. Make sure it continues to cover your child for any trips home, working overseas and adventure sports like skiing or rafting

And finally, Julie Hutchison says:“If you’re a parent funding university or a gap year, then the key will be to start saving early, to help your money grow. Make sure you are getting the best interest rates on your savings if they are in the bank or building society. But remember you have other options too if you start early enough. Junior ISAs are one of them, putting money aside that becomes your child’s at 18. Or you could save or invest for greater growth potential in your own ISA, earmarking the money for your child. That allows you to control when they receive the money and how much you give them at once. The new ISA lets you save or invest up to £15,000 a year in a tax efficient way.”