Finance

Financial Planning Tips for Your Children

As parents, you are always looking for simple and effective ways to undertake financial planning for your child’s future. Be it for graduation, post-graduation, marriage, or helping them start their adult life, saving and investing for their future is necessary. What’s more? But, it is important on how to invest in stocks under 18 to get the maximum benefits. 

Here are some tips to successfully plan your child’s finances –

  • Insurance: It is every parent’s responsibility to secure their child’s future from all uncertainties, even the death of a parent. Thus life and medical insurance should be a part of every parent’s portfolio so that even in the case of unforeseen events, your children can continue with their lives as financially smoothly as possible. 
  • Teach your children budgeting: Teaching your children how to chart a monthly budget can foster healthy spending habits in them. Teach them the difference between necessities and luxuries. Children learning to chalk out a financial plan can help them in making wise investment decisions in the future.
  • Choose the right saving instrument: There are various financial instruments to save for your children – savings account, fixed deposit, recurring deposit, government, and private saving schemes. The key is to choose the right one, which depends on your child’s future needs. 

How to invest in stocks under 18The answer to this question is simple — custodial Account. Custodial accounts allow your child to invest in a variety of assets, products, and endeavors that both you and your child believe in. Invest in hi-tech companies, entertainment companies like Disney, Facebook, and more. Even though the parent operates the custodial account, the child can definitely learn to make investment decisions. 

Our advice would be to identify your children’s most important goals and accordingly choose the best possible savings and investment instrument for them. 

 

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