Let’s face it none of us will be here or young forever. We can wish that away all we want but it’s inevitable. So when we are old, feeble, and grey or six feet below, how would we want our kids to navigate life on their own? If this harsh reality does not make you want to plan for your kid(s), I don’t know what else would.
Benefits of Investing in Your Children
Here are five reasons it is important to invest in your kids.
- It’ll allow them to plan
When our children are young, they’re hardly thinking about their long-term or short-term financial goals. This is something that we as parents should consider putting in place.
Teaching kids about the perks of investing in their goals as they get older is likely going to help them succeed among their peers and give them insight into how to achieve their financial goals as adults.
- It’ll give them the freedom to follow their dreams
Many young people struggle to pursue their goals and dreams due to a lack of finance. There are so many students who want to study further, or explore different cultures and monuments in history but do not have the financial means to do so. This is why educating your child and starting a children’s investment fund from a young age will help them build up the funds they need to achieve many of their goals in the future.
- They won’t have to work for every penny
By investing in your children, you are teaching them to earn smart. Investing allows them to do this because compound interest values long periods more than long hours spent at work. So, your kids will knock off years of hard work when you invest on their behalf.
The amount your children can get in return for their investment would be much higher than their potential work earnings in one day as adults. Investing helps them earn an income without necessarily working daily for it.
- They won’t be tied to a location
We live in a world where many people want flexibility in their lives and in their careers. Investing in your kids gives them this option. As adults, they will have the chance to study, work and live in any region.
Investing is available in every country, and this will allow them to travel and continue investing in the financial markets, no matter where they find themselves in the world.
- They can retire early
Majority would agree that making life easier for the next generation is an important factor we must all consider. No one wants their children to work long hours for the rest of their lives with little to show for it.
Being smart about our kids’ financial future can help them to retire at an early age because simply putting some money away in a savings account in the hopes of successfully retiring one day, would not yield as much profit.
This means it would take your kids much longer to save up enough money to retire compared to if they had an investment. By investing in them at a young age, you are boosting their financial future and allowing them to prepare well for retirement.
You can start your kids’ investment journey by opening a UBA kiddies’ savings account or Teens’ savings account. For more visit UBA Sierra
Leone website.
CREDIT: UBA SL Social Media Handles
