Life, these days is very expensive. We are here alive and we are feeling it, but what about in the years to come? It’s not getting any better. Our children will are growing, different needs arise and one day we will not be there to meet these needs. What if something happens to us and our children are left with no bread winner? Unfortunately these unforeseen circumstances are true and we need to prepare for them.
What are simple and inexpensive ways we can invest in our child’s future? One way is a common way and that’s through life insurance. Insurance companies will sell you the world for you to invest in your life policy. I won’t go into details here because I feel it’s personal choice. There are both positive and negative outcomes from here.
I would like to touch on other not so common ways to invest in our children’s future. We basically live life for our children and their children, we wish for them to have better opportunities and a better life than the one we had.
It’s hard to save in this day and age. Something important always come up. Yes, this is true but it is very important to save.
Opening a bank account in your child’s name. Absa, Fnb and other banks offer minor or children’s accounts. You need their birth certificate, your ID and proof of residency. I also ended up opening and account with the bank as well for myself just to make transfer easier. I opened one for my 5 year old when he was born and would transfer whatever change I have. The flexibility is that you can adjust to whatever amount you want and you are not obliged to a month to month basis especially if you don’t have a fixed month to month salary as most savings accounts do. I learnt this from my mother. She would save for my younger siblings and she built houses with the money she saved for them. Just by throwing whatever extra monies she had into their accounts. And for events like money gifts from birthdays or well wishers. She would save in their accounts. They would use some and save the rest. It’s like an online money box or an under the mattress money savings. The only thing is that this money doesn’t earn a percentage like the one from investments. But you are assured that you have saved money for your child. And it grows the more you out in it.
Stash by liberty is a great savings tool. It links to your bank account (safe and legit) and you can stash your change from as little as R10. It’s a great way to save as it saves small amounts or large amounts and you don’t see the money in your account. You can then withdraw for an emergency and it takes 3 business days to reflect in your account.
The perks are you can add your child and save to their own accounts. You would need their ID or birth certificate and an account in their name as you can only withdraw to an account in your child’s name. Money saved is claimed and given to your child when they are 18. Imagine how many R20s you can save for 18 years or less. The amount grows into a big lumpsum.
The third idea is Easy Equities. You buy and sell shares, invest in property etc. It also has a child’s account like stash for liberty. The money you invest grows and can be any amount you want. You may also buy unit trusts or shares in large profitable but sustainable companies that are doing good things for the planet.
The last but very important one is how we treat our Planet Earth. Imagine if your child has all the money in the world but no safe water, or food and not in good health. Or loses everything in Floods or wild fires in the home you left for them. Or can use or access it because of world wide restrictions for example during covid times. Our hard work of investing in their future would be all in vain. Your child won’t be able to enjoy life.
What we do today has a big impact on the future. A few years ago global warming was a myth but we were forewarned. Noone listened. It is sadly a reality today. We see it in floods, unsafe water, diseases and germs in the water, random fires, toxic air etc.
Global warming was purely a result of human doing.
Also over use of natural resources. Cutting down of trees on a massive level to make space for the increasing economy. We have less fresh air and less or limited resources (step in loadshedding and water cuts).
If we make changes today in our lifestyle reduce our carbon footprint, plant trees and healthy food, reduce plastic consumption, teach others about the dangers of plastic, use less plastic in our homes and on our children. We also prolong their life as we try and reduce diseases such as cancer from plastic use etc. Buying from local sustainable small businesses also reduces our carbon footprint.
Opt to buy sustainable products made from wood, stainless steel, long lasting silicone, glass etc.
Plant a garden or atleast have planters for herbs and easy growing vegetables. Buy from your local farmer and choose sustainably raised or free range raised animals.
Join causes and organizations that are making sustainable changes.
You may also buy assets like property or land or cars or boats or trains and place them in your child’s name. Draft a will or open a trust. Putting up the house on rent and saving the money from rent in your child’s account. Just be sure to remember to leave the account details and passwords in your will, by sending an email to your child or giving them the passwords.
Stockpiling and seed saving is also a great way to invest in your child’s future.
Buying of physical assets like gold or silver or vintage heirlooms is also another idea.
There are lots of steps and things we can do for our children’s future and this is only a dent to it.
If we rethink our consumption and rewire our brains there is so much we can do for our child’s future. Let’s join hands together for a better tomorrow.
