When you have kids, it is only normal and natural for you to want the best for them. Outside of striving for them to attend one of the best schools, trying to raise them around good people and in positive environments, securing their financial future may also be something you are considering. If your parents provided you with financial security and taught you financial literacy at a young age, you may be one of the lucky few. It may have inspired you to want to pass the same on to your kids so that they can experience some of the opportunities financial security may have created for you. On the other hand, if your parents didn’t leave any finances or assets for you, this may also be motivation for you to do so for your kids. In this light, you will find 7 ideas on how to secure your child’s future in this article.
Make Use of Their Arts and Crafts
If you have a relatively young child, one of the easiest ways of securing your child’s financial future is by making use of their arts and crafts. It may seem like a strange idea, but why not consider turning their artistic work into money? Children typically create drawings and paintings any time they’re at school, nursery, and sometimes even at home if you’re the hands-on type of parent. Instead of putting them inside of the drawer or throwing them away, why not consider framing and selling them? You may think that nobody is interested in your child’s finger paintings, but you’d be surprised at the number of people that might be. You could pick out nice picture frames with your child, take professional photos of the drawings, and then place it online for sale. Some platforms that you can sell on include eBay and Etsy. To ensure the proceeds go to your child, you could open up a child savings account and get them paid directly to their account.
Buy Them Gold or Silver
Another way to secure your child’s future is by buying gold and silver for them. If you didn’t know, when the value of currency decreases, the value of gold goes up. Before buying any, however, you should research the price of gold to ensure you get it at the best rate. To begin trading, you should learn about buying and selling gold such as the standard weight for a gold coin which is one troy ounce or 31.1 grams. As of 2017, the price of gold was around £924-£1,030 per ounce. You can buy gold from a number of places such as bullion dealers, high street shops, and even vending machines. Another benefit of buying gold is that it’s a tangible asset that can hold its value even if the stock market happens to take off or inflation rises. Sometimes, it’s best to buy and sell from the same dealer, so if, for instance, you buy from a dealer such as Atkinsons Bullion, you could also sell your gold back to them as well. By choosing to invest in gold for your kids, if a time ever comes that your child needs access to money during difficult times or needs a reasonable sum of money to invest in something, they’ll be able to monetize their gold.
Open a Traditional Savings Account
This is a more traditional way of saving, but you can’t go wrong with a savings account. Although it’s likely that your returns won’t be as high as you would like, it is low risk and an almost certain way to ensure you get returns since you’re saving over numerous years. There are multiple options for child savings accounts you can open which include easy-access accounts, fixed-rate children’s bonds, and junior cash ISA. Every account has different interest rates, but it’s possible to get up to 6% with some regular savings accounts which is relatively high. You could set up a direct debit and get money from your account sent to theirs on a monthly basis. Additionally, instead of spending any money given to them by relatives or on Christmas, why not get them to put a percentage or all of it into their savings account instead? Over a few years, you’d be surprised by how much they would be able to save. You could also get them to do chores on a weekly basis and give them an allowance that will go into their savings account regularly.
Make Use of Their Talents
Every child has a talent, and if you pay attention, it’s likely that you’ll be able to identify your child’s one. Whether it’s singing, dancing, arts and crafts, talking, or even charm, there are ways you can monetize this. For instance, if your child has a larger than life personality, you could consider opening up a YouTube channel for them. It’s also an opportunity for you to sit down and spend quality time with them by planning their show ideas, recording it together, and teaching them to interact with their growing audience. If you aren’t sure how to make money on Youtube, people typically do through AdSense, Patreon which is like an online tip jar, affiliate links, merchandise, and brand ads. As with most of the methods, you can find a way to get their proceeds paid directly into their savings accounts. You will, of course, have to make efforts to market their content online and via social media as well as build meaningful online connections to help circulate their content. No matter how insignificant this may seem, every pound counts especially when it’s made over a number of years.
Sell Their Old Things Online
As long as you have a growing child, it is likely that they have a vast number of unused toys, books, clothes, and shoes. Instead of allowing them to take space in the store or giving them away, why not consider selling them instead? There are so many ways that you can help them sell their items both online and offline. You should begin by going through the house and looking for old and unused items that are still in good condition. You can then decide how you want to sell them which could be via an online platform or by attending a car boot sale. The latter could be a fun family event where you invite the neighbours as well as friends and family. You could also decide to throw in old items from around the house so that you have more to give away. The money made from selling these items can then be put into your little one’s savings account. If you’re wondering where you could sell items online, you could try Amazon, Sell.com, eBid, and uBid.
Buy Them Stocks and Shares
Investing in stocks and shares may sound like a complicated matter if you haven’t done it before. However, it doesn’t have to be! Buying stocks for your children can be a genius idea as it can give them a financial head start and produce a regular stream of income if it produces dividends. If a company happens to do well, it can also appreciate with time which means more return on your investment. You can buy stocks directly from a company where possible, or use a broker if that’s what you’d prefer. Using a broker would require that you pay commission costs, so it’s best to look around for the best rate or consider a referral. As they grow, teaching them about stocks and how they work could also be a good way of educating them. This way, once the investments are handed over to them, they have knowledge regarding how to invest further if they choose to.
Teach Them How to Secure Their Future
Securing a child’s future by saving and investing for them as they grow is a great idea, but you should also remember that investments can be squandered. It is, therefore, key that you teach them about how to manage their finances and the importance of investments so that they adequately sustain the money and assets that you secure for them. Remember, children are never too young to learn about money management, so you can begin teaching them basic principles from when they’re young. It could be by giving them a chance to do tasks to earn money, giving them a piggy bank, and teaching them to calculate their income as well as their expenses on a daily basis.
Making sure that when your children enter the real world, they have financial security can create a variety of opportunities for them. Some of them include the ability to pay their university fees without a loan, travelling the world for a year, starting a business, or even putting a deposit down for their first house. Creating these opportunities for them may require sacrifice, but it will be worth it when you see your child has greater opportunities and access to the things that enable people to reach their greatest potential and become successful.
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