So, you have a new addition in your family! Congratulations! But
amidst all the baby boom and greetings do not forget that you
have a huge responsibility ahead of you. Besides, bringing up
your children the onus of planning for their financial future
also lies with you.
With the cost of education soaring each year in the UK, it
becomes even more imperative for parents to save up for their
children. So, what should you do? Here are a few strategies that
will help you give your children a good future:
Begin Early: Most parents do not start saving for their
children's education until they are ready for college. This is a
big blunder! Instead, be an early bird and start saving up as
soon as possible. These days several investment opportunities
are available like savings account, child trust fund and many
Look for financial aid resources: If you get your act together,
you can actually manage your child's entire education by paying
for the minimum requirements. Explore and find out about various
financial aid opportunities available for your child.
Just a little every day: Plan your expenditure in a manner that
you are able to put aside a little of your savings every day for
your child. Set an amount and then stick to the target and you
will be surprised at how much you have managed to save.
To help your child start his/her young life on a strong
foundation, you can use any of the following investment
Open a children's savings account: The children's savings
accounts are set up with banks and building societies for
children. Various banks set varying maximum and minimum age
limits for the account holders which may be as high as 21 and as
low as a month. These accounts generally carry a high rate of
interest and sometimes even bring along incentives like
newsletters or birthday cards.
Child Trust Fund: Another viable investment option is the Child
Trust Fund. In case of a Child Trust Fund, the government makes
an initial contribution of £250 and in case of low-income
families this amount rises to £500. The CTF is not made
available to the child until he is 18 and by that time, the CTF
is expected to accrue enough money to give your children a head
start either in the form of a deposit for a home or educational
Stock market funds: Stock market represents a highly profitable
but a more risky investment proposition. Although, in the short
term they may seem risky, yet the stock market funds have known
to leave other investments far behind when it comes to long-term
investments. You can invest in the stock market through a unit
or an investment trust.
Now that you have all the information you need, put it to good
use and give your child the head start he/she deserves.
Come & discuss online all topics related to Investment & finance