What is the Best Investment for a Child’s Future? Make a Plan Now
It’s natural for parents to want to shield their children from some of this stress by investing money towards their future. However, the best strategies for investing in your child’s future might seem unclear.
Before You Start Investing for Your Child’s Future
Before pursuing investing for kids, you should have emergency savings set aside and you have confidence in your retirement funds. In retirement, you absolutely need to have affordable housing, food and other necessities. If you can’t, it will be a burden to you as well as your child.
Invest for Your Child’s School Savings Account (529 Plan)
These plans can cover expenses related to K-12 tuition if you plan to send your child to a private school or can go toward covering college tuition costs.
Invest for Your Child’s Future Retirement
Helping your child start to save for retirement can put them at a significant advantage later in life.
Invest for Your Child’s Future Expenses
You can also save for your child’s future expenses without a specific plan for how those funds should be used. Uniform Transfer to Minors Act (UTMA) accounts and Uniform Gifts to Minors Act (UGMA) accounts are two beneficial types of custodial accounts that let teenagers invest.
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