Hey there, parents!
Have you ever thought about investing for your child’s future? It may seem like a daunting task, but investing early on can have a huge impact on your child’s financial well-being in the long run. Whether you want to help them prepare for big purchases in the future for their education, a down payment on a house, investing for your child can help you achieve those financial goals.
One of the key benefits of investing for your child is the power of compounding. Compounding is when you earn interest on your initial investment, as well as on the interest earned from that investment. This means that the longer you invest, the more your money can grow. By starting early, you give your child’s investments more time to grow and compound, potentially resulting in a larger sum of money in the future. 64% of parents either save or invest for their children. Saving for children is a common behaviour (42% of parents surveyed do this)1
Another benefit of investing for your child is that it teaches them the value of saving and investing. By setting up an investment account for your child, you can show them the importance of planning for the future and making smart financial decisions. It can also be a great way to teach your child about the stock market and how it works.
Investing for your child doesn’t have to be complicated or expensive either. There are a variety of itrust invest low-cost investment options available, such as Balanced funds, Gold indexed funds and Global Equities which can provide diversification and potentially higher returns than simply leaving your money in a savings account.
Of course, investing always comes with some level of risk, so it’s important to do your research and choose investments that align with your risk tolerance and investment goals. It’s also a good idea to consult with a financial advisor to ensure that you’re making informed investment decisions.
In summary, investing for your child can be a great way to set them up for financial success in the future. By starting early and taking advantage of the power of compounding, you can potentially grow your child’s investments over time. Plus, it’s a great way to teach your child about the value of saving and investing. So why not consider investing for your child’s future today? Trust iTrust Invest to give your child a head start in their financial journey!
(ABS Census 2021, Households and Families Data Summary) 1