Investments come in different sizes and shapes. As a parent; investing in the future of your family can, therefore, mean a variety of things. Not all investment choices you make are going to profit your children directly. For example, you can decide to invest more time in growing your career.
If you want to support your kids’ future, you need to be smart about your strategy. Contrary to common belief, investing to give your children a better chance for growth and personal development doesn’t have to break the bank. Here is a brief overview of the most popular kid-friendly investments that parents make, by order of cost and expected return.
#1. A Vacation
Every family dreams of peaceful vacations in a place they love. Whether it’s a holiday home by the beach or a luxury real estate property abroad, buying a secondary property is a fantastic investment. There is no denying that buying a house comes at a high cost. However, when you turn the property into a holiday home to let, it can pay for itself. All you need to worry about is to block some time where the house doesn’t accept any guests for you and your family.
How does a holiday home make a profitable investment for kids?
It can offer an unforgettable holiday year after year, bringing the family together. Additionally, it’s not uncommon for parents to use holiday home profits as a way of financing further education for the children. You can significantly cut down their student loans with the property, avoiding the problem of student debt in later life.
Have you ever been on a beach vacation? Make sure to read my beach tips before you go!
#2. Investment portfolios for each kid
The secret of a profitable portfolio is time. The longer you invest, the more you can expect to earn in return. Unfortunately, as adults, we don’t always have the luxury of waiting several decades before touching the long-term savings.
You can look for a kids’ portfolio that can be safely tucked away for the next 20 to 40 years, liberating the owner of the impact of market volatility. Ideally, you should reach out to a financial advisor to make sure you can set things right from the start.
The main advantage of long-term portfolio investment is that you can start small. You don’t need significant chunks of money, as you can buy a small number of stocks and let them grow over a long time. That’s where a financial advisor can make all the difference to help you identify emerging and long-lasting markets.
Your kids can then use the portfolio for a house deposit or to pay off their student debts, for instance.
#3. Road trips
Most families embrace road trips and camping during the warm season. Investing in a camping van or a caravan can let you make the most of your camping experience for a little longer. Why is camping with kids so important?
Spending time in nature is beneficial to all of us. It is a unique opportunity to relax and forget about our fast-paced lives. Introducing camping weekends as a way to reset priorities and recharge their batteries can help children to develop a healthy stress management mechanism. Did you know that adults who don’t have a grounding experience are more likely to turn to unhealthy coping mechanisms in later years?
Ah, gardening! Garden maintenance and care is a great activity for everybody. It is a soothing and rewarding hobby. But, for kids, you can also introduce interest in nature from a young age. Parents who plant a vegetable garden with their children have found that kids are more likely to eat their greens. For picky eaters, home-grown vegetables are an exciting meal.
In terms of investment, growing your own vegetables is not as inexpensive as it seems. Indeed, you need to consider the cost of gardening equipment, nutritious feeds for the plants, and watering. If you’ve tried to keep your garden green and healthy in summer, you know how much you need to spend on water! Nevertheless, it’s a health-boosting investment.
#5. Healthy Foods
It’s important to feed kids healthy foods. A great way to disguise healthy foods into something fun is in a fruit smoothie! Have you ever made smoothies for your kids? There are so many great recipes that kids can help you make! A smoothie bowl, for instance, can look fun while being super healthy. It helps boost vitamin intakes for growing kids, as they are less likely to reach out for an unhealthy alternative.
Investing in the future of your child doesn’t have to break the bank. Whether you opt for a financial portfolio or a choice of healthy treats – or both – it’s essential to choose sustainable kid-friendly investments that you can maintain over time.