While saving may be the best way to start your children’s road to financial freedom, it is time to explain to them that investment is the next step to make your money work.
One of the ways to invest children’s savings is to have their money make more money through the compound interest of a college savings plan.
Investing for a college fund can help your kids avoid a future filled with paying off debts incurred in tuition fees and other miscellaneous expenses.
Stocks pay attractive dividends since giant companies make a lot of money. They’ve been in business for 20 years or more and have good balance sheets.
This is an arrangement where you will open and manage the savings account on behalf of your kids.
When thinking of ways to invest children’s savings, you may consider money market accounts. They are similar to savings accounts except that they offer higher returns.