Why you should invest, not save, for your kids
While parents want to be able to provide the best for their kids, it’s hard to save for their little ones’ futures when interest rates are slumped at historic lows.
Even with regular deposits, cash attracting just 0.5 or 1 per cent interest in a savings account might not amount to all that much.
However, if you choose to invest for your kids, you could potentially net each child an extra $35,000 by the age of 21, according to Patrick Garrett, chief investment officer at robo-adviser Six Park.
“There’s a growing awareness of the power of compounding interest but also a willingness to consider investment portfolios because most people who are investing for kids have an investment time horizon of 15 to 20 years,” Garrett told Your Money Live.
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