- Present her a cute piggy bank: Piggy bank is the best place for your kids to start there savings habits in the early childhood. recommended time to start the same is at the age of 2. Give her coins in daily basis to add to her piggy bank.
- Open a savings bank account in her name: Select a savings account that provide compounding interest facility for your kids to put her money to the account from her piggy bank.
- Start a SIP (Systematic Investment Plan) with an index fund: This will not only give the benefit of growing your kids money with economy and compounding basis but also, will be enough to meet all her future requirements.
- Open a trading account: Open a trading account in her name and buy shares of one company per year using the Buffett theory by identifying the golden stocks from various companies.
- Apply for a children’s ULIP: Apply for a good children’s Unit Linked Insurance Plan by considering its low costs, high fund performance etc. Always start ULIP with waiver options to ensure the premiums will not stop in case of any sudden demise of her parents. If you select this option, company will pay the rest premium from the time of the death of parent who is the guardian for kid.
I am sure the above points will work better than any other plan you decided to have for your kid.
Please comment to let me know if you have any other better ideas that you required me to add with this article.
You can read a complete copy of this article in my blog:
http://investinternals.blogspot.com/2009/01/5-practical-child-savings-ideas.html
Sherin Devassy is an investment and finance blogger with “The Money Maniac”, a powerful investment and personal financial planning blog featuring numerous articles on investing, personal finance and all available investment products to guide readers to take strategic investment decisions and build a fail proof personal financial plan.
For further reading, visit my blog @ http://investinternals.blogspot.com
Tags: child investment, child savings, children investment, investing, investing for kids, kid savings