Knowing the best way to invest in your child’s future is not always as easy as banks and financial institutions may tell you. If you don’t have a lot to start with, knowing where to spend and save can be confusing. Do you lock money away to accrue interest for the future, or spend it on your child’s homeschooling and education in the here and now? With no real right or wrong answer, we discuss some of the ways you may consider investing in your child’s future.
Saving or Spending?
This dilemma is often solved by the age of your child. If you want to hold the money for longer than ten years, then it is a great idea to save any money you have. This allows an adequate period of time for it to mature. Thus, with younger children, it may be better to put your money away somewhere. If you don’t plan on holding money for that long, then spend it on them now.
If you do decide to save or invest it for them, then take independent financial advice. You will need to work out your personal level of risk with this money. Safer options involve putting it in high interest savings accounts. Yet you can potentially make more from it by investing, though this obviously comes with a higher level of risk. This will bring up a range of options for you. From stocks and shares to different savings accounts, there is no right or wrong way.
Homeschooling Investments
You must make sure money is not put away and is spent on something that has long-term implications. For example, you may pay for your child to attend certain educational courses, private tuition, or upgrade your personal resources. In the digital era, investing in quality computers, hardware and software is one of the biggest yet essential expenditures for those homeschooling. Check with an educator or local computer technician what will be most useful and then look at the best options for your budget.
Don’t be afraid to plug gaps in your own knowledge with these funds. As you are the teacher, understanding the concepts you are providing your pupils with is essential. This may include mathematics, language or science courses amongst others.
Even courses on pedagogy will make you more efficient. Look around in the local area and see what is available. Upskilling may also be something that can benefit your own resume.
Helpful Tips for Saving
Start by tracking down any lost accounts you may have. These may have been in your name or could be ones set up when your child was born. By reopening them, you may be able to consolidate any funds into one lump sum. You should also ask any relatives to do the same. Grandparents may have set up similar accounts.
You should then work out what you can afford to save. Saving should not impact your quality of life, and you should make sure all basics are paid off first. Concentrate on any debts or credit and pay these before starting. Once this is done, automate an affordable account so that payments are being made monthly.
Don’t be afraid to close one investment for another, or sell off assets to supercharge savings accounts. This can usually be done if you inherit a property and don’t want the burden of renovating to sell or renting it out. There are now many companies that know how to sell your house fast who will make you instant cash offers. The best ones can turn sales around in as little as seven days, which leaves you free to invest your money.
Turning It Into a Lesson
Your bank will offer you up-to-date information on how to invest any money you have. An independent financial advisor will be even better, and scour the best interest rates for your needs and circumstances. However, don’t do this alone. As your child’s teacher, it is the perfect chance to let them learn about finance. Interest rates, savings accounts, and having some basic maths skills are all waiting to be applied practically.
Even with a low income, these tips should let you put away a little each month. This will build over time, and even if you don’t invest the money, it will allow you to provide a better quality of homeschool education. Truthfully, only you know what is best for your child, and whatever path you take, investing in their future will pay off down the line.