Investing for your children while they are young is one for the best ways you can insure they will have a firm head start in the financial game of life. You do not have to go and set up a major trust fund for them to live off, but providing them with a few investments at a young age could be the difference maker in their financial lives. There are a few ways you could invest for your child’s future.
College fund backed by safe and growth investments
Depending on the age of your child at the time you start their college fund, you very well could position them to never have to work a day while they are in college and reap the benefits of the insane returns some growth stocks can provide. A course of 5 years, 10 years, or 18 years is a very long time, and could provide for stellar compound returns if just prudence is used when picking the investment to back your child’s college fund. The goal is to look for both growth and security so when it is time to send your child to college you are not left wondering how you will foot the hefty tuition bill.
Open a custodial investment account
A custodial investment account is an account that is opened for a minor, but has both the name of the parent and minor on the account. This is a great tool to teach your child how to invest. You could teach them how to pick their own stocks and bonds and how to place trades. A custodial account also keeps the power over the account in the hands of the parent.
Investing for your child early in their life will automatically give them a head start in the financial game of life. While others are struggling to develop their net worth, your child will have the investments you made for them early on to build their financial future.
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