Related topics
5 tips for setting your child up for financial success
We all want our kids to be successful and that includes setting them up for financial success. To help you achieve it, we’ve put together 5 achievable tips for investing in their future to help give them a solid financial foundation to build upon.
1. Have clear financial goals
Start by defining your financial goals for your child’s future. This will give you a roadmap to follow and help you stay on track.
An emergency fund could be a good financial foundation. Establishing an emergency fund could help ensure your child is financially secure during unexpected situations.
Here are other examples of other financial goals:
- Car fund. Saving for a teen’s first car is a practical goal to help make a big difference as they find their freedom.
- Education fund. Whether it’s for uni or vocational training, saving to investing in your child’s education can provide them with a lifetime of returns.
- First home fund. With ever-rising property prices, saving to help your child get into the property market can be a smart long-term plan.
- Wedding fund. Regularly putting away some pennies now can be a nice gift to ensure your child has a memorable celebration without financial stress.
2. Start saving early
Time is your greatest ally when it comes to investing for your child’s future. Even if your child is just a newborn, it’s never too early to begin. Starting early also allows you to benefit from the power of compound interest, potentially resulting in a larger nest egg for your child.
3. Explore your savings options
When it comes to saving for your child’s future, consider various options:
- Kids savings accounts. These are easy to set up and make it easy to access funds. Some even offer bonus interest when you meet the account criteria, so shop around.
- Term deposits. Term deposits usually offer higher interest rates but require you to lock in your money for a specified term. Which may not be issue if you’re saving for the long term.
- Shares. Investing in shares can potentially provide even higher returns over the long term but it does involve more risk. So getting expert help may be your best first investment.
4. Diversify your investments
Putting all your eggs in one basket can be risky when investing. So to help protect your child’s financial future from market fluctuations consider diversifying – spreading your money across different types of investments – to help balance the risk.
5. Always ask an expert
Financial markets and investment options can be complex. So one of your best investments could be consult a licensed financial planner who can design an investment strategy that can help you – and your kids – achieve a financially secure future.
For more on how financial advice works and what to look out for visit moneysmart.gov.au or to find a licensed financial planner in your area check out the Financial Advice Association Australia at faaa.au
ING does not endorse and is not affiliated with third parties mentioned in this article. ING is not responsible for any services provided by third parties nor does ING accept any liability or responsibility arising in any way from any products or services supplied by the third parties.
The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. Living Super, a sub-plan of OneSuper ABN 43 905 581 638 is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.