Give Your Kids Financial Security This Christmas
It has been reported that with each passing year, Brits are spending more and more money on Christmas. It is an expensive time for all of us, but when we consider the wastefulness associated with the holiday season, many people are turning towards alternative types of gifts this Christmas to give their loved ones something of real value. With so much uncertainty around the financial future of young people, there is a lot we can be doing to secure their habits early and ensure they are stable with money into adulthood. Here are a few ideas you can put into practice this Christmas.
This is at the very start of the spectrum, where you can give your children a chance to take control of their finical future in earnest. Having a physical piggy bank would be suitable for anyone under the age of 5 as it teaches an important lesson about the value of saving today to allow for spending tomorrow. It really does begin with the small change and creating this mental connection through something as simple as a change jar or a piggy bank will go a long way in the future.
Today, it sounds like something from the distant past, but premium bonds are still on the go and still represent a sound investment for someone looking to make a return on their savings. In times gone by, it was popular for grandparents to invest in premium bonds on the occasion of the birth of a grandchild. The money earned by these bonds can then be reclaimed in adulthood. Nothing is stopping you from putting money in over Christmas, and it comes with the added bonus of possibly winning money in regular prize draws.
Following on from the premium bond idea, another way you can use the market to your child’s advantage is through looking at the stock market and investing money in shares in their name. Having the knowhow to choose the right investment strategy is vital, but you can build a lot of money over the long term. There are growth industries that you can look to, if you want to see big returns on the money you are putting in. It all comes down to how much money you want to invest.
Some people view Premium Bonds as antiquated, and the rate of prize money isn’t as good as what you see on many savings accounts. If you would like to put your child’s money to work in a way that will benefit them, have a look at some of the premium junior ISAs on the market. These high-interest savings accounts are designed to build wealth on the road to adulthood, and you can deposit money into them on their behalf on big occasions like birthdays, graduations, and of course, Christmas.
This is if you really want to look to the future of the child that you’re buying for but could be one of the most valuable long-term gifts you could give them. There are a number of products on the market designed to save a pension fund for a child that they won’t be able to access until they are 55. With a lot of uncertainty around the current working generations ability to be able to afford their own retirement, anything that you can do to help young kids now will likely go a very long way to helping them out in the future.
This Christmas, instead of getting something disposable and forgettable, why not give the children in your life a gift of real value that will benefit them over a lifetime.