You care for your children and want the best for them, and as the parent, there are many things you can do to give them a brighter future. This includes paving a path that will help them financially. While they will have to stand on their own two feet and get a job, there is still much you can do to give them a head start.
Here are a few ideas you (and your children) can benefit from.
#1: Open up a savings account
You probably have a savings account for yourself, but you can also open up one for your child. And the sooner you open an account, the more money they will have access to when they eventually come of age. It’s important to do your research, however, as different banks offer different rates of interest, depending on the type of account you go for. For your information, we think this article is very useful, as it offers a comprehensive outline of the options open to you. Of course, when your children finally gain control of the money you have saved up for them, they may start spending it in ways that you might consider unwise, but it’s up to you, as the parent, to raise them with a positive financial mindset, as we have described below.
#2: Educate your children
From a very early age, there is much you can do to educate your children on being financially responsible. This includes giving them pocket money, and teaching them how to budget and save for the items they want in life. You can talk about the value of money and the benefit of shopping around for cheaper items. And you can show your kids that money doesn’t grow on trees; that it has to be earned, which they can do by doing odd jobs around the home to build up their pocket money savings. Take a look at the child-friendly money lessons here, and use creative ways to teach them to your children.
#3: Prepare for when you’re gone
Sorry to say it, but you aren’t going to be here forever. This is heartbreaking for your kids, but you can lessen the blow by leaving your assets behind. Taking out a life insurance policy is important, as is putting your children (including a legal guardian) in your will. Speak to a financial advisor on your options for both, and they will guide you into making the best decisions for you and your family. While you may want to delay taking out life insurance and a will, you never know what is around the corner. It sucks to think about death, but for your kids’ sake, you do need to put these things in place as soon as you are able.
#4: Start earning an extra income
Should you be a stay-at-home mum, there are ways to earn money that don’t involve going to work. Take a lot at some of our money-making tips here. Not only will you be able to enjoy the rewards of any money earned with your children – family holidays, extra-special Christmases – but you can also put some of it into your children’s savings account. And if you’re currently working, but not making enough money to live on, those extra income ideas will help, as will a step into a new career if you feel able to do so. This will better all of your futures.
#5: Invest your money
To grow your finances, investing your money is a risk worth taking. There are all kinds of investment opportunities, from using CMC Markets to trade on the stock market, to buying property that you can later rent out to others. And if you do invest in real-estate, this will offer further benefits to your family. Not only can they benefit from the income earned, but they will also have somewhere to stay when they are needing a place to live later in life. Whether you still charge them rent or not is up to you! Another way to invest your money is to put it into a business opportunity. Whether that’s setting up an ecommerce site or something placed on the high street, you can use the money earned to prosper your children’s future, and when that dreaded D-word strikes, you can leave your business to your children as part of your legacy.
We hope our ideas were useful to you, but if you have ideas of your own, then we would love to hear what you have to say. Take care, and thanks for reading!