Why I Choose This Method to Save Money For My Kids

The future of our children has always been our major priority which makes this article an interesting one. This prompt the word “Why I Choose This Method to Save Money For My Kids“. First, let me start by sharing some of my experiences when saving for my kid. I was presented with so many options of saving money for my kids, I choose the best option for my child who is seven years today, and lo and behold, he is 250 thousand united state dollars richer (250,000USD). Before I go into details, let me take some time to explain the process involved to save money for kids.

 

Meaning of Saving Money

Saving money as American author Hill Napoleon put it, is the foundation or a path to all financial success. Having money saved is what provides the means for you to take advantage of your financial life or situations, whether it’s starting a new business, going back to college, or buying shares of stock when the market smashes. There is something you need to put in mind, saving is different from Investing. Saving money is the act of storing cash in safe accounts or securities that can be accessed or sold in a very short amount of time. Investing money is the process of using your saved money to buy an asset you think has a high probability of generating a safe and acceptable rate of return over time. This means buying government bonds, stocks, and real estate.

 

Saving Money for Kids

Saving Money for a kid today is a remarkable gift for their future. Not only can they start their adult lives with some savings, but getting kids involved early with saving also helps them learn essential lessons about finances.

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Important of Saving Money for Kids

Understanding financial skills are paramount in helping you navigate life and for your kids(children). Those financial skills involve saving and investing for the future of your children. The importance of saving money for kids include:

  1. Rest of mind
  2. Giving your children value in the future
  3. Securing the future of the children
  4. Giving the children the knowledge of financial freedom
  5. Making the children and the entire family happier

The big question is what are the options for saving money for our kids

 

Option of Saving Money for Kids

Below are detailed options for saving money for kids:

S/N Options Details
1

Children’s savings accounts

You can set up an account with a bank by going to the bank to open an account with the child’s name. You can start depositing money into the child’s account on regular basis till the child comes of age.
2

Piggybank

According to Collins, A piggy bank is a small container shaped like a pig, with a narrow hole in the top through which to put coins. This method is the oldest method of saving money both for adults and children.
3

Junior cash or stocks and shares

If you wish to open a Junior ISA for your child, it means they already have a Child Trust Fund, ask the provider to transfer the money from the Child Trust Fund into the Junior ISA.

Junior cash ISAs is a good savings opportunity because your child will pay no tax on the interest they earn. Junior stocks and shares ISAs are ‘tax-efficient’ because their investment is free from any liability to Capital Gains or Income tax.

4

Child Trust Fund accounts

According to Money Helper, A Child Trust Fund is a savings account for children born between 1 September 2002 and 2 January 2011. They’ve since been replaced by Junior ISAs, but those with existing Child Trust Fund accounts or vouchers can still keep their accounts and pay in. Find out more about how a Child Trust Fund works and what you could do with the funds in your account if you have one.
5

NS&I Premium bonds

MoneySavingExpert explains NS&I Premium Bonds are a savings account you can put money into (and take out when you want), where the interest paid is decided by a monthly prize draw. You buy £1 bonds and each has an equal chance of winning, so the more you buy, the more your chances improve.

NS&I sexes up the draw by personifying its IT equipment; it calls it Ernie (Electronic Random Number Indicator Equipment). In reality, it’s a simple, audited, random number generator.

6

Children Pension

A child’s pension is exactly as it sounds – a pension set up by a parent or legal guardian for a child under the age of 18. A child pension shares many similarities with adult pensions, including attracting pension tax relief and the rules surrounding how to eventually access these pension savings. (NerdWallet)
7

Cryptocurrency

Investopedia.com makes us understand that cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

Mother teaching her daughter about savings | Flipflage

Why I Choose This Method to Save Money For My Kids

At the beginning of this article, I mentioned my son which is seven years old has already 250,000 USD. The possibility of this is I choose cryptocurrency among others as a means of saving for my kids. In 2014, I was blessed with a baby boy, two years later, I was introduced to Cryptocurrency which I saw then after deep research on it and how it works as a means to save money for me and my son. Then DogeCoin was sold for 0.000223USD,  I bought like 1,500,000 units of it which is some amount of 334.5USD. Currently, DogeCoin’s price is $0.1909USD. You can see the amount I have made for my son with the space of 5 years without stress by just saving $334.5USD. No other Saving Money Option can give u such a figure, that is why I consider it as the best way to save money for kids.

 

Conclusion

My advice to everyone out there is to embrace this option for your kids and yourself. Cryptocurrency has come to stay. This is the new revolution taking place like others. Other options can only cause disaster because of a lot of disadvantages associated with them. The cryptocurrency saving option is still presented right now as we speak. There are plenty of potential coins to save your money.

 

As a beginner to the Cryptocurrency world, I took my time to create a course that will bring you to speed in the cryptocurrency world. I called it the Cryptocurrency Simplified.  Also, if you are planning to choose crypto as another source of income by going into trading, you can also check out the best trading strategy for crypto, which is called the Dollar Cost Average.

 

Photo Credit: rawpixel.com

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