Future parents 'should grow their long-term savings'

Thursday 06 January 2011

Article by Mozo

Young Australians planning to have a family in the future should aim to grow their money in long-term savings options, it has been suggested.

Future parents 'should grow their long-term savings'

Columnist Julia Thornton, writing recently in the Queensland Sunday Mail, expressed criticism of the federal government's new Paid Parental Leave scheme which she said would see some families get up to $10,000, some get the $5,000 baby bonus and others get nothing.

She argued that the money could be put to better use by helping Australia's many hard-up pensioners and was critical of the notion that "the government must provide" for new families and mothers.

Instead, Ms Thornton suggested that people in their 20s and early 30s could put aside a certain amount of their salary each week in order to grow their savings ahead of having a baby.

"Say a 20-year-old earns $30,000 a year and puts away $10 a week each for two children. By the time the woman has a baby at the average age of 31, he or she has had around 10 years of saving," said the columnist.

Australians aiming to boost their long-term savings can choose to compare term deposits in search of the best returns. According to a recent report in the Bayside Bulletin, it has been predicted that more than 85 per cent of families will be better off under the Paid Parental Leave scheme.

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