Love for our Kids can move Mountains
Its never too late to start an investment portfolio for our children, however the longer we leave it the less compounding interest we will achieve.
A well balance and diversified portfolio to enable a steady growth yield is the key. Fees is also a key factors to ensure we maximise the performance of the portfolio. The key to kids portfolio shares picking is to pick good quality long term companies.
It is always advisable to share these investment guides with our children to understand the value of savings, investment and passive income generations.
Lets provide them a Jumpstart
I learned a story about a 17 year old young man who dreams to pursue chemistry failed after earning straight A’s in his University entrance exams. With his parents marital and financial complications, he was unable to afford to go University. He was not fortunate to be born in 1st world countries like UK, US, Germany or Korea to get support from government and social welfare.
As a parent myself, I seek to prepare financially for my kids when the day comes. A generous sum of money could be the jump start of their next phase in life. The journey of financial education on the value of money needs to be introduced at a young age. It takes 3 hours to make $10 dollars and 2 minutes to spend it.
A simple $150 investment a month for 18 years at average 7% growth give a sum of $86,250.00
Simple tips for Kids Stock Investment Portfolio
1. Small Affordable monthly payments. If you skipped 3 happy meals a month, 2 Kids Magazines a month, 2 Xmas Gift less, 20% less clothings per year you could save yourself £2,000 a year. A study conducted in US, an average American parents spend a total of US$250,000 for 18 years of kids growing up expense alone.
2. Buy major countries index and large corporation companies which will be on earth for next 50 years! Apple, JNJ, Google, Unilever, Disney, 3M, Mcdonalds.
3. Opening a kids individual investment account are mostly tax free in first world countries. Having their own account help segregates it away from you own investment and savings.
4. Gifts as Cash for kids investments. Grandparents and friends are always filling more than required presents on Birthday and Xmas. Always try to request for cash directly into bank for future education funds.
