An Introduction to Investing for Children
We all want our children to have the best possible start in life – but providing such a start is becoming increasingly expensive. A private education, university fees, wedding costs and property deposits all largely require parental assistance for younger generations, with high living costs and commensurately lower salaries making saving difficult. Whatever your goals for your child’s future, investing offers the potential for strong returns, especially if you start early. While it is by no means guaranteed, data1 shows that investments have historically performed better than savings over the longer term.
ASSESS YOUR OBJECTIVES
The first step is to understand what you are investing for. For example, you might want to:
- Pay for your child to be privately educated, which costs on average £5,064 per term for day students and £12,000 per term for boarders2;
- Assist with university tuition fees (over £9,000 per year for most courses) and/or living costs (£4,914 for an or an average 39-week rental contract)3;
To read more about how this can benefit you, please view the guide below.