Whether you’re a relative, parent, grandparent
or a friend, investing for a child’s future is
one of the most important things you can
do. For any investor, time is a powerful ally
– so where you are investing on behalf of children,
you start with a great advantage.
Not only do long timescales allow
for greater risk-taking and thus
higher potential returns, but there
is the power of compounding, as profits are
re-invested year on year. Ask any parent, and
they’ll agree on one thing: one minute your
children are toddlers, and almost before you
know it they’re going to university or planning
to buy their first property.
Whether you save little and often or have
bigger sums of money to invest, keep going over
a few years and you can build up a really useful
amount. It can go a long way to setting them on
the road to becoming independent or helping
them with university or housing costs. You might
even encourage them to become savers.
Saving for a child today is a wonderful gift for
their future. Not only can they start their adult
lives with some savings in hand, but getting
kids involved early with saving also helps them
learn important lessons about money.