Today we have a guest post from Charli Radke, a freelance personal finance writer…
Similar to adults, kids can have an unexpected event that occurs, which may cost you money such as a sick visit to the doctor, a last-minute school expense, or broken glasses. In order to prepare as a parent, you should try to plan ahead by having money set aside to cover these types of expenses. Here are some tips to help you get started establishing an emergency fund just for your kids.
Save a Certain Amount Each Payday
In order to start your emergency fund for kids, you should determine how much money you are able to designate to your fund each pay period. Whether it is only $5 per pay period or 10% each pay period, you should make sure you save this money in your fund before any other expenses are paid. If you have a hard time remembering to set aside your designated amount, you may want to set up an automatic transfer to a saving account through your bank or your employer.
Earn Money Online
There are several legitimate ways to earn money online such as writing, starting a blog, becoming a virtual assistant, and transcription. As an online freelancer, you will be able to use your knowledge and skills to earn additional money for your child’s emergency fund. However, please be sure to first do your research before you send any personal information to a potential client.
Sell Unnecessary Items
If you take a look around your home, you will most likely find some items that are not needed such as old clothing and toys. By selling these unnecessary items, you can add money to your child’s emergency fund to give it a quick boost. Some ideal ways to selling your items would be to have a yard sale, place an ad in your local newspaper, or sign up as a vendor in a local consignment sale.
Earn Money through Investing
You can earn additional money for your child’s emergency fund by putting it into investments. If your investment makes a profit, then you would definitely reap the benefits of using this option. However, please note that there can be risks associated with investing. So if you are not sure how to invest, it would be wise to speak with a financial advisor to discuss your plans and future goals.
Get a Part-time Job
Getting a part-time job can be an excellent way to create a source of money for your child’s emergency fund. Many part-timers find jobs delivering pizzas, doing a newspaper route or working in sales. Another option would be to start a small part-time business from your home although it may take some time to get it started. However, if you end up a financial bind before you can find part-time work, applying for a payday loan with paydaycity.net can help you get the cash you need quickly.
Whether you use all of these tips or some of them, the most important thing is getting your child’s emergency fund started. It may take some time to see your savings grow but the benefits will outweigh the hard work in the long run.
3 comments
Sean @ One Smart Dollar
October 11, 2012 at 10:34 am (UTC -4) Link to this comment
If we went through all of the unnecessary items in our house and sold them we could probably make a fortune. We have so many DVD’s and video games that are never watched or played any more that it’s kind of sad.
Modest Money
October 11, 2012 at 10:51 am (UTC -4) Link to this comment
It’s definitely important to have more money for emergencies when you have kids. You never know when they might become very sick or get in a serious accident. You want to be able to help them right away. Regarding selling stuff around the house, I’d recommend trying to sell those items online first. I think you’d get a better price than through a garage sale.
John S @ Frugal Rules
October 11, 2012 at 12:07 pm (UTC -4) Link to this comment
Great tips. We personally are big on putting aside a little after each paycheck to help build up extra money for things like this. This is also another good reason to have an HSA so you save on taxes as well.