*Collaborative post
Bringing up a child is one of the most rewarding life experiences you could possible imagine. Getting to see your child grow into the fantastic person they are sure to become is quite simply a delight, though not one devoid of troubles. Indeed, worry is a key aspect of the parental experience – and, given the current economic state of affairs, money worries are a naturally progression of such parental concern. To allay these worries, what could you do to invest in your child’s future and success?
Create a Nest Egg
Firstly, you should consider starting their financial journey on their behalf, and as early as possible. You can do this by creating a savings account for them, as a nest egg for them to receive when they become an adult. Setting up such an account does not need to be as involved as setting up a formal trust fund, though; instead, you can simply use conventional savings products to create value for your child in the future.
One way to do this would be to find the most attractive-looking limited-access ISA. ISAs allow the interest on your savings to enjoy exemption from Income Tax, while limited-access accounts enable higher rates of interest due to lower overall risk. Altogether, this can help maximise the amount you put away and the amount it grows, all for the benefit of giving your child a more comfortable start in life.
Teach Them Financial Literacy
Financial comfort in early independent life is but one small part of a much larger, more complex equation though. Financial literacy is not an easy skill to learn, and can be even harder to learn well in times of economic hardship – when slight changes are all that can be made, and yield little in the way of returns. As such, perhaps the more valuable start to your child’s financial journey comes in the things you teach them.
From an early age, you can start instilling in them the concept of money, value and currency, before introducing more complex topics such as saving and frugality. At a certain point in their development, getting them their own savings account can be a vital step in giving them the tools to learn and develop. Here, though, it may also be wise to take your hand off the tiller a tad; sometimes the best lesson learned is a mistake made.
Invest in Education
Not all investments are purely financial in subject or nature – and if you are especially concerned about setting your child up for a successful future, there are alternative means of considering such preparations. For example, any investment in your child’s education will be incredibly beneficial for their prospects.
Don’t be afraid to sign them up for extracurricular activities, and do your best to indulge whatever interests of their own they might develop. Even if learning an instrument doesn’t guarantee them a spot in the Halle orchestra, it will help them with a great deal of soft skills that could be transformative for their life chances.