Ideally every parent would like to enjoy financial security for themselves as well as their offspring – both now and in the future.
Amid all the other parenting worries, it’s easy to forget about their financial future yet even if your child is a newborn you can start making some shrewd investments.
Below are some suggestions to help you set aside some capital for your children.
Planning is key
Before jumping into any agreements or opening a savings account, you should step back and layout both yours and your child’s goals. Education will be the most common element to consider, especially If your child is at a mature age where they have an idea of what they want to do. For example, they may want to move away for university, which can be a costly process if they do not receive a significant amount of funding. You must be prepared for this by taking into consideration additional expenses such as living costs and educational material.
Invest your income
In order to provide substantial expenses and financial security to your child, you should consider making a long-term investment, which can provide you with ongoing returns. One of the best ways to do this is through property investment, with the most popular option being buy-to-let, where you can rent out your investment to short or long-term tenants. To help you decide if property investment is the right option, you should speak to property experts like RW Invest. They can offer their professional advice on property investment procedures and can help you find the right property for you in a prime location – where you can benefit from extensive profits.
Explore the stock market
It may seem strange to consider investing in stocks for your child; however, it can actually provide lucrative funds that can be used to support your child in the future. To start, you should open Junior Stocks and Shares ISA where you can put in up to £4,368. This can then be left to develop interest, so the longer you leave it, the better the financial gains are for your child.
Set savings aside
One of the most common ways to invest in your child’s future is to set up a savings account. This could involve opening a regular child savings account which offers interest rates up to 4.5%, and it allows you to pay in small amounts up to £100 so you can save up without breaking the bank. You could also consider an easy-access savings account which unlike a normal account which cannot be touched, cash can be withdrawn at any point. This may not seem like the best way to save, but it is actually a great way to teach your child the value of money by giving them some sort of responsibility early on.
– this is a sponsored post