As a parent, you want the best for your kids, not just now or until they move out, but for the rest of their lives. Helping them out financially now can help set them on the right path and make their lives easier long after they’ve struck out on their own.
But you don’t have to be wealthy to give your kids a head start in life. The earlier you get started, the bigger an impact a small investment can have by giving that investment time to grow. You can also help them by teaching them financial literacy skills like how to budget and how to invest.
Buy Them Silver When They’re Young
When kids are really young, some of the best gifts you can give them are things that will appreciate in value over time and that they can make a decision with when they’re older. Silver coins and bars are an excellent way to invest for young kids.
Silver has historically been an important vehicle for wealth preservation, along with gold. A stack of silver coins or silver bars will likely preserve their value and potentially grow over the years.
It’s not hard to find out where to buy silver either. Bullion dealers offer the most straightforward transactions, with access to silver bullion coins and bars without having to wade through too many overpriced collectible options.
Start a Registered Education Savings Plan
A Registered Education Savings Plan (RESP) is a savings account designed to let parents invest for their kids to later withdraw the money to pay for their post-secondary education. Parents have a $50,000 lifetime contribution limit, which their kids can use to avoid going into student debt.
The Canada Education Savings Grant can also help you build more savings for your children’s future. The CESG is a matching contribution from the Canadian government. Everyone can receive a base grant regardless of income, and lower-income contributors can receive additional funds through the grant.
Teach Them How to Invest When They’re Young Adults
Once your kids reach their teenage years or their twenties, you can start to teach them about investing themselves. One of the most important lessons they can learn is the importance of growing their savings.
When you teach your kids how to invest, you want them to learn about:
- The importance of compound interest and how it makes money grow faster than you could save it on your own.
- The risks that go into different types of assets.
- How crucial it is to save money as early as possible, even if it’s a small amount.
Any edge you can give your children from an early age will help in the long run.