Whether it's university tuition fees, a helping hand with getting onto the property ladder, or simply having enough money put aside to buy a first car that won't break down on the drive home, it's never too late to start saving for your child's future. It wasn't so long ago that the 'Little Man' in my life was graduating from potty-training lessons, and now he's set his sights on graduating from his first year in school. This got me to thinking about saving for his future…
OK, we're kicking things off with a suggestion straight out of left field. Purchasing precious metals is the long-term reliable alternative to traditional banking that could help you to avoid the boom and bust instability linked to other forms of saving and investment. I've discovered silver ounce bars from Golden Eagle Coin that I think are a great way to get started. From doing my research, I've learned that as the value of money goes down during a recession, the value of precious metals goes up. Now that's an investment that could prove to be a real cash windfall in the years to come!
Tax-Free Savings Account
Depending where you are in the world, tax-free savings accounts may be available. In the UK, for example, junior ISAs are available for under 18s. How do they work? Well, there are two main 'savings account' options. The first option is a simple cash saver account that doesn't tax any interest earned (up to a certain limit). The second option is to invest the savings in a junior 'stocks and shares' ISA. This option is not taxed on any interest earned from successful stocks. A popular choice is to invest in both options and simply sit back and watch the numbers grow over the months and years.
UK Premium Bonds
Unclear as to what buying Premium Bonds entails? Don't worry, you're not alone. In the UK, Premium Bonds are a type of savings account mixed with a 'national lottery' style monthly draw. Winners receive tax free pay outs, with two people per month winning the top prize of £1m. Four people win £100K each month, ten people stand to win £50K, and so on until further down the list we have the lowest prize of just £25 (won by 2.8 million people each month). Bonds are available for £1 each (you must buy a minimum of £100, or set up a standing order). Unlike single use national lottery tickets, premium bonds are re-entered into the draw each month. Feeling lucky?
Disclosure: This is a collaborative post