There's no golden rule to saving for your kids, but there are some handy tips out there.
Childbirth obviously comes with a lot of responsibilities for the parents – not only in terms of taking care of the child but also to gain expertise to invest to secure their future.
The beautiful feeling of becoming parents comes with a whole new understanding of math and accounts, to indulge in investing money wisely and look out for high returns.
Fret not and read on to get a hands-on guide to help you do the state of the art financial and investment planning for your children.
Invest in a Savings Account – Opening a saving account with a bank in the name of the child is a big deal. World banks let the parents manage the account of the children until the children turn seven years of age. It is a win-win situation for your kid, where the savings are looked after and the child too can learn about savings and its benefits.
Invest in Stocks and Shares ISAs – The best part about investing in ISAs is that these are tax-free and free from liabilities to Capital Gains. The parents manage the ISA’s but a child can only withdraw money from them once they are 18 years of age.
Friendly Society Plans – There are friendly societies that run tax-free savings plan for children, where the parents can choose to invest for a certain term ranging between 10 to 25 years. The money invested is considered to be a share-based investment which when matures; the child must be at least 16 years of age or more. These plans fluctuate with the market and no tax is levied on the child on any gains or income.
With the investment options stated above, one can easily contemplate as to how easy it is to invest in a child’s future, but are you concerned about whose money is it?
It is interesting to know that when you investing in your child’s name, the money stands for them, at their will. There are certain provisions where the parents can choose to fix an age bar until which no money can be debited from the account in the child’s name. The average age to open savings account for a child is seven years but parents usually opt for cash withdrawal by the child when they are 18 years of age.
To understand the size of the total savings, there are many portals online that can help in understanding the whole child saving scenario. When talking about savings, there are many online websites that will help one understand ISA investment better at low costs with no fees and hidden charges.
There are other websites that are total money savers and game changers while they provide for great discount codes that can be used on investment and financial websites to gain low-cost service fees. Keep in mind, any saving is a good saving – there is no golden rule other than this. All the best.
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