You should not save for your kids. You will be doing them a disservice. A huge one in fact.
See, the biggest asset that your kid has is youth. Or simply put, TIME. Why are you not using that to your kid's advantage?
What can we do with time?
We all understand that with time, the magic of compounding will grow $1 into much much more. For instance, if you could put a $1,000 in the bank account at a deposit rate of 7% p.a., your $ will double in 10 years time. And double again in anther 10 years. Simply put, it will grow by 4x when your kid is 20 years old.
In short, the faster we can compound the $ we set aside for our kid - your kid - the more he or she will have at age 20.
Now, we will all love to get a 7% bank deposit rate. But no bank is offering that. 1% is what they are giving you. "Take it or leave it", is what they will tell you.
Imagine...the potential of time
But imagine that you can achieve that in the stock market. And you really don't have to imagine it. Because that is a fact which is backed by endless academic papers.
Fact: The stock market offers the highest returns amongst all asset class, across time.
And time is what your kid has. In abundance. Out of the springtime of youth, your kid will have an abundance of wealth. Your kid will have a headstart over its peers, in the race towards financial freedom. If you invest.
And shouldn't you give your kid a headstart in life?
Give your kid a headstart - $ and education
You may give your kid a headstart by giving your kid all the $$$ in 20 years time.
Or you could simply apply it to your kid's education. University fees are expensive now and they will probably be more expensive 20 years down the road. By investing now, you can afford to pay for that pricey college education later.
Else, your kid may end up having to take on a loan to pay for school. And to be in debt even before earning a single cent. That sucks.
So do yourself a favour. Do your kid a favour.
Invest today for your tomorrow; for your kid's tomorrow. Learn how to do it in our free preview class here.
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