A lot of parents get anxious about providing for their children for their studies and further studies but they can commence fulfilling their duty by gradually investing for their kids. Not only it is a great idea to invest for your kids and secure their future, but it also lessens the monetary burden from your shoulders. However, it is very important to address their current financial needs.
No matter your child is a newborn, toddler, or a growing teen. You can start investing for kids at any age. The earlier you start, the better it is for you and the child. Even if you invest a small amount, it will add up to a nice amount in the future for your child. The average cost of raising a child is constantly rising with rising inflation. Right from their toys, school expenses, sports expenditure to college fees, a parent has to take care of all the expenses of their child. These are the continuous expenses which go on till your kid finds a job for himself/ herself.
Hence it is better to start investing now. When you make an investment for your kid in their early life, the amount maximizes to its full. The longer you invest, the higher your returns get compounded. It is essential to commence a saving and investing plan as soon as possible so that you get the best possible return and your child doesn’t have to compromise anywhere in life. It is not suggested that you invest thousands of dollars in one go. Even a small investment of just $10 from their birth until their college can really help them and teach them the value of investing and compounding.
The custodial account will allow you to control their account until the beneficiary reaches the age of maturity. Once you start educating your kid about investment, you can make joint decisions. It will not just prove to be a valuable learning experience for your kid, but will also help them to be financially independent. Teaching your kid about compounding and showing them companies where you have invested for them, will make them learn a lot about investment, stocks and create their own investment nest which they will be proud of.
If you are looking for a great option to invest for your kids’ future, then Loved is an app that offers you the opportunity of custodial investing for those below the age of 18. It is an investment account of the kids controlled by adults until they reach maturity. All you need to do is sign up with the social security number of you and your child. Look out for the investment options as per your fiscal goals. Create their portfolio and include investments that will give them good returns in the future. You can go for renowned companies like Amazon or Apple. Educate them about investment and secure their future now. It is one of the best things which you can do for your child’s betterment. So, don’t stop yourself from doing it.