08.04.2022
AN INVESTMENT IN THE FUTURE OF CHILDREN
Children are our sequel, so we need to start investing in their future when they are young. To ensure a good start in the lives of your children, it is important to create enough savings for a good education, and why not for a home, money for a wedding, start-up capital. Achieving this goal takes time, so if you haven't paid attention to this investment yet, do it today.
It is never too early to think about the future of our children. From the very beginning, you need to answer a few important questions about how much money you will need, when to start saving, how much to spend, and how to choose the right financial instruments for your savings. It is up to you whether you bet safely and save or take the risk of investing. Here's where to start and what to look for.
Children's savings account
Opening a children's savings account in your child's name is perhaps one of the most important things that will determine the future of your generation. When you are a young parent, you are probably thinking mainly about your current needs as a family, and you are somehow ignoring the more distant future that lies ahead and will come sooner than you expect.
Children's savings deposits secure the future of your heirs. You could set different conditions for spending the amount. This type of deposit is a special offer for children who have not reached the age of majority. You could save money at any time to withdraw if necessary, as well as deposit various amounts in any currency, even through your online banking.
Child insurance
Life savings insurance is a way of better education and a good financial start for the child in adulthood. These insurances can be taken out by a parent or other adult, such as grandparents, with the consent of the parent, as the risk in most cases is on the health and life of the adult and the child is a beneficiary. The term of the insurance is in accordance with the age of the child, so that at the end of the year he is an adult and can have the funds for his education, regardless of how much insurance benefits are paid during the contract.
The sum insured can also be paid in the form of a scholarship for several years, and an additional guaranteed return is added to the amount. By receiving the money as a lump sum or in installments for a certain number of years, the young person can invest his money in education, start his own business or cover part of his expenses without relying on his parents.
Property purchase
Owning your own property in our country continues to be a traditional and preferred way to invest. Many parents decide to provide a good independent income for their child in the future by buying a home in which they will one day be able to live, rent or sell. Ideally, you will have enough money to give an equal material start to all your children, but in life this rarely happens.
There is an option for parents who do not have enough money to buy an apartment, house or plot - to buy shares in a joint stock company that invests in real estate or agricultural land - REIT. These companies are required to distribute 90% of their profits each year (if any) as dividends, so you can receive annual income to reinvest in the company (to buy another square meter each year) until adulthood to your child.
Education
A Chinese proverb says: "If you think about the year ahead - sow an annual crop. If you are thinking about a decade ahead - plant a tree. But if you think a century ahead, educate people“. Education is one of the most important things parents can give their children. This is not about saving for possible future studies, but about acquiring practical skills in the present.
Learning a new language or programming, for example, is an extremely important investment that you can make with your child at an early school age. Do not underestimate disciplines such as sports, music, painting, acting and other fields of art. Just take into account your child's talents and interests, enroll him in the desired course and give him the opportunity to develop his skills.
Capital market investments
As interest rates on bank deposits have melted, capital market investments are becoming an increasingly sought-after alternative. The possibilities are numerous and it is good to consult in advance with professionals - financial and investment advisers - regarding your future investments in financial instruments (stocks, bonds, fund units, etc.).
It is easiest to start with mutual funds. You don't have to start with a large amount, as your investments are combined with those of other investors and managed as a "package". Among the many funds in equities, bonds or mixed (balanced), you can choose a fund that meets your preferences - risky, less risky, balanced. As a rule, the profit is directly proportional to the risk taken. Thus, depending on your choice, with a longer-term investment, for example for 18 years, you can save money for the entire study of your child and provide it to him when he comes of age.
Hereditary business
If you have a business acumen, maybe now is the time to grow your business for your children to inherit. There are many examples of passing on a profession and business from generation to generation. There are many advantages for children to inherit the craft (or business) of their parents - in addition to the material base (whether factory, office, dentist's office or restaurant), professional contacts, distribution channels (or customers), but the most important thing that entrepreneurial experience is also inherited.
Your successors will be far ahead of their new entrants. This investment in the future of children has only one drawback - it depends on their desire. They may simply not want to follow in their parents' footsteps. Therefore, if your children are old enough, discuss your idea with them before realizing your idea of starting a new business.
