We all want our children to get off to the best possible start in life. Finances play a big part in this. Being able to support your children financially means that they can have better opportunities, which is something that could prove to be invaluable. With their own nest egg, they can put the money towards travelling, their first car, a mortgage, a hobby, or anything else that they desire. It’s a great gift to give them when they come of age. The money you put into an investment grows over time, so the sooner you start the better. Let’s look at some ways for you to put money aside for your child’s nest egg.
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Research the different types
There are many different nest egg options out there, so you need to think carefully about which one you go for. With investing, there is always an element of risk involved, so you need to decide just how much money you put at stake, and which risk category. There are safer options and more ‘adventurous’. Often, the higher the risk, the greater the possible reward, but nothing is guaranteed. This is why you need to do research around the subject before putting any money down.
Set up a direct debit
By setting up a direct debit to contribute to a nest egg on a regular basis, you’re ensuring that it grows steadily over time. This doesn’t have to be a huge amount of money. Ten pounds a month can very quickly multiply over the years. As well as this, if you are putting in a set amount on a monthly basis, you are ‘dollar cost averaging’ which has a lot of potential benefits.
Ask friends and family to contribute
When it comes to special occasions, instead of buying your little ones another toy to add to their collection, encourage friends and family to contribute to their nest eggs instead. Every little helps, even if it’s only a very small amount, it’s giving them something for the future. This is better for very young children, as they won’t notice that they haven’t received a gift from their uncle, whereas a 12-year-old might not be so pleased!
Inheritance money
If you happen to get some inheritance money, and your children also get some of it, then why not invest some of it? Your kids can’t very easily spend a large chunk of money now anyway, so it’s best to store it away to (hopefully) grow until the time comes that they can truly make the most of it. When it comes to the time when they can spend it, you can let them know how many people cared enough to contribute to their future, which is a lovely thing, as it makes it much more meaningful.
Building your children’s nest eggs from a very young age means they’re more likely to have financial freedom when they come of age. Set them their own nest egg up today.
