As a parent, it’s easy to get caught up in the busyness of balancing kids, work and other daily responsibilities. Planning ahead is often measured by months and maybe even years, but it can be difficult to find the time to look decades ahead. But that’s how long the benefits of giving your kids a solid financial footing can last.
Many people think they have to be rich to give their kids the kind of financial help that will have a lasting impact, but that’s a common mistake. Small investments grow over time, and they can have a significant impact with enough time.
Teaching kids’ financial literacy skills when they’re young follows the same logic. Small investments and lessons at a young age will grow and flourish over time and will give them a significant advantage as adults. Here are some of the ways you can start setting your kids up for future financial success now.
Gift Your Kids Gold or Silver
When kids are young, it’s not uncommon for them to desperately want a specific toy for their birthday or Christmas. They’ll beg and plead for it, and then when they finally get it, they quickly get bored by it.
Sometimes the best gift is one that they might not truly appreciate when first receiving it, but their appreciation for it will grow over time. What better way to accomplish this than with something that will appreciate in value?
Gold and silver are excellent vehicles for wealth preservation. The silver or gold in the form of coins or bars that you gift them today are likely to do just that.
Just be sure you purchase gold or silver from a reputable dealer like Global Bullion Suppliers.
Purchase Life Insurance
It’s something no parent wants to think about, but it’s important to consider your family’s financial situation should you or your partner die. You want to be sure that your family will be taken care of in the future, no matter what happens to you. Purchasing a term life insurance policy can give you the peace of mind of knowing your family’s finances are secure.
Plan for Their Education
It’s no secret that those with post-secondary education earn more money than those without. Even if you can’t afford to make large contributions to an education savings account for your kids, it’s worth setting it up and contributing what you can, especially if contributions are matched by the government.
Saving for your kids can help them avoid taking on student debt or reduce the amount they borrow, meaning they can graduate and start their careers without immediately worrying about paying off their loans.
Teach Them About Investing
As kids get into the double digits, you can begin teaching them about finances and investing. Good lessons to teach to kids will depend on their age, and can start when they’re younger with the benefits of saving from an early age and compound interest. As they get older, you can also teach them about different types of investments.
These are practical life lessons that your kids will be able to use for years to come.
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