Five Ways to Invest In Your Kids Career
Names are known to influence the child’s personality, and the meaning of the name must be seen before naming your baby boys’ or girls’. Why is it so important to know the meaning of the names? People usually choose names that are linked to their religions, after some famous personalities, etc. Still, something common in all the parents is that they want to name that has a beautiful, unique, and prestigious meaning. Muslims, for example, name their children after the name of Holy Prophet PBUH, His companions, and beloved ones. Christians, on the other hand, choose different names, Greeks or Romans use the names of their mythological god and goddesses. Basically, names depict our traditions and culture along with the influence they have on the bearer’s personality. All names are beautiful and hold some significance to the beholders. Do you know what does Mia means? Mia is an Italian word or short form of the name Maria. It is a beautiful girls’ name, meaning ‘mine’. It has both Spanish and Italian origin and is said to be derived from the name Miriam. Every parent thinks good for his or her children. When a child is born, from naming the child to bringing him up, from sending him to good educational institutions to investing in his future, parents have planned all.
Five ways of investing in your child’s career are:
Best things in life are never free, and believe me, children are the most expensive assets a parent could have, No? Yes, children are expensive! Let’s normalize this thing because parents invest their whole lives and their whole property for the wellbeing of their kids. When parents decide to bring a little one in the family, they also decide to do all the good things for their little child—saving up as much as they could so they don’t have to worry about finances when their child grows up.
Here are some options of how to save up efficiently:
Junior ISA is a child trust fund, where parents keep their money, and the money is saved, and no tax is applied to the money. This child trust fund is only valid for children of age under-18. There are two types of ISAs money-saving accounts:
- The parents give cash, and no tax is applied to the interest that is earned from the money.
- Stock and shares are bought from the money, and tax does not apply to the capital growth in which the money is invested.
You can save money in anyone, or both types of ISAs accounts. Your children can get access to the accounts when they are 16, but they cannot withdraw money unless they are 18 years old. You can have junior or adult ISA for saving your money and tax-free savings for as many years as you want. When your children are above sixteen, and you think that they can manage the funds, ISA is the best option.
Saving up your money in the bank or with some trustworthy building society is the best way of saving the money for your child’s future career investment. Unlike ISAs and some other child trust funds, you don’t have to wait for some specific time to withdraw your money. You can use your money whenever you want. If you want to build saving habits in your children, give them access to some money and an account where they can save up. In this way, they’ll learn to manage their money well.
National Savings and Investment Children’s Bonds:
NS&I children bonds are money-saving accounts for children under 16. No tax is applicable on the interest earned from the money you saved up in the account for the period of five years. The interest amount is fixed and tax-free. Anyone can buy up this account, parent, great-grandparent, grandparent, or guardian. This means that you can invest in the future of your 3rd or 4th generations as well.
Trusts are agreements between the settler and the trustee. It is a legal agreement, and you can place anything (it can be money, assets, land, cars, buildings, etc.) and nominate a person who will be the owner of these assets after you.
There are two types of trust accounts:
- Your child will be the owner of the assets in the trust when he/she is 18.
- You can decide at what time or age the assets will belong to their respectful owners.
Junior Self-invested Personal Pension:
SIPP is a pension scheme for your children. Well, a long, long time till the retirement of your children, but it is an excellent option to save something for your children. Just like adult pension schemes, junior SIPP is tax-free up to 20 percent. There is a specific amount that can be saved in your child’s SIPP account unless he or she earns more than that particular amount.