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Friday 31 October 2014
Friday 31 October 2014
Friday 31 October 2014
Friday 31 October 2014
Every parent wants to give their child the best possible start in life. Building a financial nest egg is a great way to help your child spread their wings when the time comes. Beyond the financial benefits, teaching your child the value of managing personal wealth is an invaluable life lesson.
1. Start with a Financial Plan
Investing in your child’s future requires careful planning. Consider seeking professional advice to navigate the financial milestones from birth to adulthood. Parents need to decide how to balance spending during their child’s early years with saving for their future needs.
2. Time Can Turn Pennies into Pounds
Small, regular savings can grow significantly over time. Starting early allows you to take advantage of compounding growth. However, if your child is already older, don’t be discouraged—whatever savings you can set aside will still provide a valuable boost for their future.
3. Invest as Much as You Can Afford
Children’s paths often vary after finishing core education, such as pursuing further education, professional training, or employment. Having funds available can ease their transition into adulthood, whether for tuition fees, transport, or other necessities. Even if they don’t need the full amount, the extra funds can give them a strong financial head start.
4. Save Regularly
Integrate saving for your child’s future into your family’s financial management:
Treat investments as a regular expense, even when money is tight.
Consider topping up savings with occasional contributions from family and friends, especially during special occasions like birthdays or holidays.
5. Be Mindful of Tax Implications
Children enjoy the same personal income tax allowances as adults, and there are specific savings options designed for them:
Children’s Savings Accounts: Under certain conditions, children can receive tax-free interest. Parents must complete an R85 form to qualify.
Junior ISAs: These accounts allow tax-efficient saving, but funds become the child’s legal property at age 18.
If you’re concerned about handing over a large sum to your child at once, explore other financial products that provide more control. Professional financial advice can help you choose the best option for your family.
Resources for Further Guidance
By starting early, investing regularly, and being mindful of tax opportunities, you can build a robust financial safety net for your child’s future. This thoughtful preparation will empower them to step into adulthood with confidence and security.
Every parent wants to give their child the best possible start in life. Building a financial nest egg is a great way to help your child spread their wings when the time comes. Beyond the financial benefits, teaching your child the value of managing personal wealth is an invaluable life lesson.
1. Start with a Financial Plan
Investing in your child’s future requires careful planning. Consider seeking professional advice to navigate the financial milestones from birth to adulthood. Parents need to decide how to balance spending during their child’s early years with saving for their future needs.
2. Time Can Turn Pennies into Pounds
Small, regular savings can grow significantly over time. Starting early allows you to take advantage of compounding growth. However, if your child is already older, don’t be discouraged—whatever savings you can set aside will still provide a valuable boost for their future.
3. Invest as Much as You Can Afford
Children’s paths often vary after finishing core education, such as pursuing further education, professional training, or employment. Having funds available can ease their transition into adulthood, whether for tuition fees, transport, or other necessities. Even if they don’t need the full amount, the extra funds can give them a strong financial head start.
4. Save Regularly
Integrate saving for your child’s future into your family’s financial management:
Treat investments as a regular expense, even when money is tight.
Consider topping up savings with occasional contributions from family and friends, especially during special occasions like birthdays or holidays.
5. Be Mindful of Tax Implications
Children enjoy the same personal income tax allowances as adults, and there are specific savings options designed for them:
Children’s Savings Accounts: Under certain conditions, children can receive tax-free interest. Parents must complete an R85 form to qualify.
Junior ISAs: These accounts allow tax-efficient saving, but funds become the child’s legal property at age 18.
If you’re concerned about handing over a large sum to your child at once, explore other financial products that provide more control. Professional financial advice can help you choose the best option for your family.
Resources for Further Guidance
By starting early, investing regularly, and being mindful of tax opportunities, you can build a robust financial safety net for your child’s future. This thoughtful preparation will empower them to step into adulthood with confidence and security.
