As a parent, is there any greater asset than your child’s future? Get great tips on how to invest in your child’s future – they’ll thank you for it!
How to invest in your child’s future
They say that being a parent is the most challenging and the most rewarding experience that life can bestow. As a parent, you want the best for your child in every sense. Material well-being is probably the greatest gift that a parent can give their child. It’s up there with raising your child in a stable and mentally sound environment. However, while the latter is something you’ll strive to offer from day one, the former is something that your child can benefit from when they are older. There’s no one-size-fits-all solution when it comes to investing in your child’s future, but there are definitely steps you can take to make sure that your child receives the kinds of benefits that only financial planning can ensure. Here’ what you can do…
Invest In Yourself
If this one sounds a little cryptic, it isn’t. The implication here is that you do something that will benefit you and your child afterwards. The most obvious example would be setting up a business for yourself, which can eventually be something for your young one to take over when the time comes. These days we are afforded so many more opportunities in terms of choosing a business and making it work. We’re no longer confined to the traditional physical models of business, and we have the internet to thank for this.
The information superhighway is filled with various business models that you can choose and apply. Maybe it’s a side-hustle, maybe it’s a hobby that develops into more, the point is you’re only limited by your imagination. From affiliate marketing to dropshipping, there are models you can follow to the point that our business can become a form of passive income. All junior has to do is maintain it.
Invest In A Retirement Annuity From A Young Age
This is one your kid will definitely thank you for, although you might not be around to receive the gratitude. Retirement Annuities speak from themselves – they’re designed to help out with the latter years. The sooner you can take out one for your child the better; and once they are old enough and earning a salary, they can then take over the monthly instalments. Obviously, do your research – choose a reputable and established insurer and make sure you increase the instalments annually to fight off the scourge of inflation.
The big insurers are usually quite spread when it comes to investing the money that you put away with them; this means that their investment bankers decide where to grow your money. A portion of it might go into future investments and indices trading while another might be placed in commodities. In addition to keeping up with the payments, instil the good financial practice in your child’s mind of having a financial planner that they can consult with regularly and who can advise them about the policy accordingly. Remember, the earlier you start, the better, and the more you put away, the better.
Open Up A Tax-Free Savings Account For Education
A tax-free savings account is rarely a bad idea. These accounts usually cap of at a specific annual amount – meaning you cannot exceed a certain amount per year. You can either make a large single deposit or you do a series of deposits. As the name suggests, you won’t be taxed on the amount and what you do save will grow at a faster rate when compared to a regular savings account. You can open a tax-free account for the benefit of your child’s education as soon as they have a national insurance number. While this money can legally become theirs once they are of legal age and they might want to spend it on travel, remember to poke them in the right direction – that of a quality education – it really is priceless.