6 Smart Ways To Invest For Your Children’s Future

Regardless of how untroubled about future some people are, it all changes once they become parents. The moment the baby arrives everything changes, especially our nonchalance toward money and savings. Only, this time is not just about rainy days that may come, but also the bright, shiny days when our kids are no longer drooling toddlers, but almost adults with their big dreams and life goals that they plan to achieve. Aside from unconditional love and proper upbringing, it is the parent’s main responsibility to make sure that their kids will have a good starting point in life once they leave the nest.  Saving money and investing in their future is a long-term project, so read on to find out more about it.

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Take care of yourself first

Although this may seem absurd, rest assured that it is one clever way to ensure a brighter future for your kids. Before starting to make plans about investments and children’s saving accounts, make sure to start saving for your retirement.  In addition to that, consider getting a term life insurance, as it doesn’t cost a fortune, yet it does leave you at ease. Also, filing a will is a smart move, even if it seems too early. All of these measures are nothing else but caring for your little ones as you wish to release them of responsibility to financially take care of you in your old age.

Saving accounts

Saving money this way is traditional and perhaps the safest way to put away some serious money for your kids. Even though interest rates are low and taxed as income, keep in mind that bank saving accounts, unlike some of the investments, are completely risk-free. There is plenty of ways to set up a children saving account as well as saving options for children. For instance, in the UK, you can set up a saving account on behalf of children, and when they turn seven, they can start managing their account. Great lesson in money handling as well as adopting saving habits.

Investing in steady growth

Considering low rates, having a saving account may not be the best opportunity out there. There are plenty of financial products and saving plans that will allow you to achieve your goals with much higher interest and substantial return over time. It is a combination of investment strategies and savings that fits your planning horizon and risk tolerance. For instance, couples in Singapore save money for children’s future by investing in unit trusts and education endowments, which are quite flexible and risk managed option, as well as great opportunities for long-term growth. However, these types of investments do require a reliable financial advisor.

A specific education savings plan

Having a well-educated kid costs arm and leg, so start putting money aside timely. There are saving plans that ensure that all the money, including interest, is directed to cover qualified education expenses. These are tax efficient and relatively safe saving plans that hold parents as account owners and children as beneficiaries. In Canada, this is RESP (Registered Education Savings Plan) and in the US is 529 plan (or College plan). Still, aside from the investment risk, there is a possibility that your child will not wish to go to college. In that case, you can change the beneficiary and still spend money on education. Spending money on unqualified expenses will result in penalties.

Try investing in commodities

Investing in commodities is a smart way to make money for the future, but not every commodity can stand the test of time and fluctuation on the market. Instead of investing your money in energy or agriculture, stick to the rarest and most valuable commodity of all – diamonds. It is not for the rich people only, since you probably have one already, on your engagement ring. Safe investing in diamonds involves learning the basics on how to properly diversify your investment portfolio. Also, monitoring the diamond market can be of great use, since lately, there is a big demand for naturally colored diamonds.  Look for rare pieces and rest assured that their value will increase over time.

More ways to save money

Find the way to create passive income, or in other words, way to make money while you do other things. For example, if you have additional space, rent it out via AirBnB. Also, keep in mind that all of your current possessions are frozen money at the moment, so sell things that you don’t need and earn. You can sell outgrown clothes and old toys, cribs, strollers, sports gear, etc.

Conclusion

The world is an expensive place and future is costly. Still, with some planning and logic, it is possible to ensure a good life for your little ones.

A Few Benefits of Teaching Your Children about Finance at an Early Age

A Few Benefits of Teaching Your Children about Finance at an Early Age - money tree image

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Teaching their kids about financial management and financial concepts isn’t really a priority for many parents. In fact, it often doesn’t figure in any meaningful way at all, beyond perhaps issuing an allowance and giving the child a piggy bank to proudly store their savings in.

Of course, The Financial Fairy Tales are based around the premise that there is real value in introducing your children to the world of finance at a young age, while also acknowledging that the best way to teach children is frequently through metaphor and story, such as by weaving financial messages into a fairytale structure that everyone can understand on an intuitive level.

Unfortunately, however, some people believe that teaching their children about finances will have a detrimental on them in some way or another. Perhaps by making them more cynical, greedy, or less imaginative.

Here are a just a few benefits of teaching your children about finance at a young age, to offset any such potential concerns.

It can open their eyes to financial opportunities down the line

There are a lot of ways in which someone can make their fortune through interacting with the world of finance, but the vast majority of these avenues remain closed to those who haven’t been trained to spot them, and who aren’t armed with the confidence and basic know-how required to get involved.

Forex trading is one of the most potentially lucrative and rewarding financial fields to get involved in, but it requires a good degree of confidence and financial understanding to participate in fruitfully.

Getting your child comfortable with financial thinking, and getting them to consider the financial dimensions of things from an early age, can increase the odds that they will be able to successfully navigate realms such as Forex one day, with the help of tools such as those found at FX-List.

It can help them to avoid developing a fear or dislike of financial thinking

Many people have a somewhat pathological fear, or dislike, of financial thinking or financial management, well into adulthood. This often stems both from a sense of insecurity and also from a sense that there is something inherently uncouth or threatening about dealing with financial topics.

Yet whatever we do in life, financial considerations must be given their due. By getting your child comfortable with financial thinking at an early age, you help to ensure that they practice better money-management down the line, and are more responsible in their financial dealings.

It can help them to develop an entrepreneurial mindset from an early age

Children tend to be naturally enthusiastic about the world, and if something is presented to them as a game or a challenge, they will typically be keen to get involved.

When your child is introduced to financial concepts at an early age, it is more likely that they will seek to apply those concepts. In the short term, this may start as “investing” pocket money. Over time, however, it can develop into a genuine entrepreneurial streak, of the sort that can transform their destinies for the better.

The importance of teaching children hard work and determination

There are lots of different things to be thinking about when it comes to parenting and teaching our children. But one of the things that we need to make sure that we instill in our children from an early age, is the importance of hard work. Experts have found that when we teach our children the value of work and the importance of it and that of determination, it helps to improve self-esteem, as well as helping emotional development. So there are plenty of reasons why it is a good thing to do. This is never more important than raising children in this day and age.

We can get so used to things being available at the touch of a button, that it can be hard to wait for things. Which is why more than ever, teaching our children the importance of waiting for things and determination, will help them in so many ways. So here are some of the ways that you can encourage your children to stay on track and show them that hard work really does pay off.

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Praise Effort

There is a reason in school that report cards often have an attainment score, as well as an effort score. That is because in some areas our children may struggle, but if they are putting in plenty of effort into it, then you can’t ask for more. So praise the effort that they put into things, and they will learn that effort (or hard work) is an important thing.

Don’t Help Them Too Much

It can be really hard to not help our children when they need a little help. But often, when we do too much for them, it doesn’t help them to learn or grow. So placing them in some difficult situations, but ones that are not impossible, is going to help in a big way. They will learn what works, and even when things don’t go well, they can learn to keep trying and learn that precious skill of determination.

Encourage Work

As our children grow, then there can be things that they can do around the house to earn pocket money. And this is important to start from fairly early on (though it could be for whatever reward you see fit). When the time comes for them to be able to earn money for themselves, then you should encourage them to do so (for a small number of hours). You could even look at things like apprenticeships for 16 year olds, so that they can learn a skill, as well as a small income. It can give them a confidence boost, and get them used to working hard.

Be a Role Model

It can be so hard as parents to teach your children to work hard, if you are not doing that yourselves. Which is why you have to practice what you preach, in all areas, when it comes to your children. So show them what working hard looks like, and they will have some stellar examples to follow.

Investing In Insurance Policies to Protect Your Family

Personal finances tends to be a subject that dominates the majority of parents’ thoughts. Why? Well, we’re inevitably going to be concerned with our income, whether it will meet necessary bill payments, whether it will be able to support our family’s lifestyle, and what luxuries it allows us to afford for our little ones. However, it’s important that we don’t simply dwell on the present when it comes to money matters. We have to think about the future too. Unfortunately, we can never be certain what the future holds for us and we need to be able to cover the costs of any negative situations that may arise. This is why it’s so important that we take out comprehensive insurance policies. These help to protect us against misfortune and secure our loved ones’ futures, even should the worst happen! So, to get you started on the right foot, here are just a couple of different types of insurance that you should seriously consider investing in.

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Car Insurance

Now, if you have a family vehicle, insurance is a legal necessity. But many families do skimp out and simply grab the lowest cost cover available to them in a bid to save money. Sure, you should seek out low cost cover, but you need to make sure that it meets all of your needs too. So, use a site like http://www.cheapautoinsurance.co/ to input what you need from your cover and find the cheapest deals that meet your needs and requirements. Ideally, you should be protected against fire, weather, and vandalism, as well as on-the-road accidents.

Travel Insurance

Increasing numbers of us are spending longer periods of time abroad than ever before. Though prices may well increase during the school vacations (as travel agencies tend to exploit this being the prime time for families to get away), we are still able to take advantage of fast flights and low cost accommodation across the world. Now, we are all aware that we should invest in travel insurance before heading overseas. After all, we want to protect our belongings. However, travel insurance can also provide us with something more valuable – medical cover and transportation in worse case scenarios. Medical treatment overseas can cost a lot, with even minor procedures and treatments generating multiple figure bills. However, if something worse were to happen, chances are that you’d be given higher intensity treatment. If you were to pass, the bills for this would pass onto your family. Avoid this by ensuring that your medical cover on your travel insurance is extremely high. You should also take a look at policies that cover the cost of transporting a body home should disaster strike, and the worst happen.

Hopefully, this has helped you to start thinking about the different types of insurance policies that could greatly benefit your family in the long run. While it’s important that you ensure you are getting by at the moment, you should always bear the future in mind too!

How to get your child organized for school.

Kids are a beautiful creation. Most parents will admit that a day without their mini human beings is quite boring and dull. Nevertheless, as much as they brighten their world most of them generate chaos and disorganization wherever they go. Which is why parents should ensure they help their kids get organized for school. Doing so is key to helping them do well not only academically but also in life which is why we put together a list of tips to help parents get their children organized for school.

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Daily planner

One way to get kids ready is to ensure they are aware of the events, deadlines, and appointments that they will have from the first day of the term to the last one. That helps ensure that they prepare mentally for any teacher appointment, educational event and also the closing day so they can work towards better performance. Besides recording what will happen during the school term or week encourage them to write about their day at school to help them with their memory. Additionally, if they write about what their day was like you will be able to know how their life in school is like, whether they are being bullied and also what they think of their teachers. The best way to do so is by giving them a daily planner in which together with the parents, they can record this information and be looking at it whenever they need to remember what’s required of them. There are many daily planners out there, but none meets that purpose like toad diaries. It can be customized according to fit your child’s needs and comes in various sizes and cover design so it can make the planning process more fun and memorable such that when your kid forgets something they can quickly remember to look at their diary.

Prepare them for the next day using Sticky notes

No matter who their parents are or where they come from, most kids have one thing in common, and that is they are hyperactive. That means, they quickly forget things and they rarely concentrate on one task. In respect to that, it is easy for them to overlook what you helped them record in their toad diary and make their day go south. However sticky notes can help prevent such occurrences. Asking them to write a reminder for the next day’s activities and lessons prepare them for what is in store while at school and prevent them from losing focus. To act as a reminder, ask them to stick the notes on the mirror, doors and more importantly on their desks while at school to ensure that they stay organized and focused on their studies. Whether they have a spelling test, an academic contest or games, recording all these in a sticky note will help them remember whenever they see it sticking out on their desk and as such prepare for it.

In addition to the sticky notes, ensure they are ready for the next day by monitoring them as they pack their bags every evening after they are done with their homework. Ensure that whatever they need is in there, so they don’t forget to bring it to school and cause them a rough day with the teachers.

Assignments

Another way to ensure that your child’s day at school runs smoothly is by making sure that their assignments come home and they finish them in the evening. They should begin with the tough ones so you can help them out if they need assistance and then leave them doing the rest. Also be sure to check out the previous day’s homework to see whether it made it to the teacher’s desk. Also, create a specific study area where they cannot be distracted by the television or other kids in your house to help them concentrate.

Praise them

Don’t just scold your child whenever they fail to be organized instead try and look at the situations when they get it right and praise them for it. Praise them for finishing their assignments on time, when they manage to create their sticky notes on their own or write about their day in their toad diary. Praising them continuously will encourage them to be more organized but criticizing will only make them afraid of you and no parent wants that kind of relationship with their child.