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We all want the best for our kids, and everything we do for them is, in essence, an investment. But what will give you the best ‘return’? The truth is it things like this can be hard to quantify. Money helps, of course, but it isn’t the be-all and end-all. With this in mind, I thought I would go through some of the best investments you can make for your kids. Let’s take a closer look.
A happy home life
No matter what we do as parents, it all has an effect on our kids. The trick is to make those experiences as positive as possible for them. While money can give them choices, it won’t necessarily turn them into stable, healthy adults who have a good outlook on life. Your role is critical, so consider the impact it will have if both parents are working, chasing the money. No child is worried about how much money you earn – their concerns are about how much time you spend with them. It’s a delicate balance to strike, of course. But, spending your time providing a happy household will be the biggest – and best – investment you can make.
A dollar a day
Could you afford to save a buck every day for each of your kids? Think about it – it’s a Starbucks coffee at most if you have three children. Save up for a single year, and you have $365. Use that money to invest in some small-cap value stocks, and you might get a return of 12%. So, after 18 years, you will have saved a total of $6,570 – but the compound interest means it will be worth $20,348 – not bad at all.
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Education
Educating your children to the very best standard costs a lot of money, even when you avoid the private schooling system. To give your child the best opportunities, it’s vital to start saving at an early stage. College and tuition fees can hit you hard later on in life, but without that money, your kids may miss out. https://www.moneysmart.gov.au/managing-your-money/ recommends investing in an education fund – and start as soon as possible. The amount you pay in will be nominal, and it will give them the opportunity to experience a high-quality learning experience.
Real Estate
While there are no guarantees with investment, there’s no doubt that real estate offers a lot of long-term potential. It gives your children a more secure future – and even somewhere to live when they decide to leave home. If you want to go down this route, location is key. According to http://www.marshallwhite.com.au/suburb-guides/brighton/, there are a few things to consider. World-class schools, parks, shopping, and amenities are all highly sought after. Find a location that has all of these, and you should keep your tenants happy.
A family accountant
Finally, hiring a family accountant can be one of the best investments you will make. They will work with you – and your children – to get you the best return on any investment possible. They will teach you how to save your kids from paying tax when you pass away. Most importantly, they will get your children used to the idea of looking after their money.
