Investment for children – An investment advice for parents

Each parent wishes to see the future of his child secure. How can we achieve this? By making sure that his studies are covered, by making a savings fund that the child will be able to access at the right age, and other measures that will give the parent some piece of mind. Everything changes when children appear in our lives, and we would do anything to see them happy and fulfilled. Unfortunately, the insecurity of tomorrow makes more and more parents think about ways of investing in the future of their children as early as they can, before the economy gets destabilized again or they lose their jobs. And when such terrible times come, in case they do, you will be able to sleep at night, knowing that your child has something set aside just for him.

And with such a high desire of parents and grandparents, to invest money in the future of the youngest members of the family, there isn’t a lack in financial products to choose from. In fact, many parents find it hard to settle at one option, not knowing for sure which brings the biggest benefits. Also, the long term of the investment, about 10 to 15 years, until the child is 18 years old, makes the decisional process even harder. Most parents may be tempted to start a children’s trust fund, although the return is much more profitable in the case of shares. Trust funds are more traditional, but financial experts say that if parents are looking to get something out of them, there won’t be too much they will be able to enjoy.

But even if shares are more profitable, you won’t see too many parents jump into them. They are afraid of subjecting their precious savings to the risks of losing them. Still, this exaggerated conservative style can be to the detriment of the funds you are looking to gather for your child. To your knowledge, there are many investment funds especially created for children, so it is worth looking them up. Some of them might be Invesco Perpetual Children’s Fund or Scottish Investment Trust’s Stock plan: A Flying Start. When choosing such an investment plan, do check out the minimum deposit sum. The funds are efficient because they have a minimum amount that is required to be invested each month. But the best part is that nothing is fixed forever. Feel free to stop, change or start your payment whenever you feel like it.

So, there are two main methods of investing money in the future of your child. One would be a designated account, and the other is the investment fund. The control is entirely yours, until the child is 18 years old, a moment in which you can pass the account on the child’s name. Although, most parents will prefer to keep the account in their name, because it is less complicated this way, still having the control over the money and account. Thus, in the end, it is mainly up to you how you do it, but do some research before choosing the best option for you and your child.

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