The yellow brick road led Dorothy to the Emerald City and then safely home, which taught her independence and self-belief. Start paving a yellow brick road for your children so they can become financially independent and have a secure future.
Let's face it; most parents did not have smooth sailing into adulthood themselves. They were riddled with student debt or had to take out debt for a first home or a car. With the rising cost of living, it is becoming increasingly difficult for young adults to become financially independent. Everything seems to be increasing except for salaries. Combine that with the instant gratification syndrome that plagues most of us, and debt has won even before you start your adult life.
What is instant gratification?
In financial terms, it is when you buy a product immediately, often using credit, so you don't miss out instead of saving up for it and buying it in cash so as not to get into debt. This culture of getting what we want immediately filters down to our children, who think this is the standard way to live and spend. Saving for something is often neglected, and being in debt is the norm.
Imagine how wonderful it would have been to start your adult life without student debt. What could you have done with that extra cash every month?
Everyone could do with a jump start in life, and a savings nest egg could secure your children's stress-free and debt-free entrance into adulthood.
Example - Investing £200 a month over 20 years could build up a nest egg of around £100 000. (Scenario earning an average 4% p.a. interest with a 4% annual increase to beat inflation)
Different ways to save money for your child
- An education savings plan is ideal to save for your child's tertiary education. It allows monthly contributions over the long term and is tax efficient.
- An investment account could help accumulate capital for a house purchase, house deposit, or start-up capital for a business.
- Also, a savings app linked to diversified funds like Catalyst can accumulate wealth. Catalyst allows you to invest in diversified funds specifically created for deVere Acuma. It is tax efficient, offers good returns, and deposits can be made whenever you have extra money.
Start a savings plan for your children, help them pursue their education dreams, start a business, buy that first home or car, or even take a gap year to gain world experience.
Chat with an advisor about setting up an investment plan for your children.
Please note the above is for educational purposes only and does not constitute advice. You should always contact your deVere Acuma advisor for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken as a result of reading the above.