10 Feb Building Your Child’s Funds
Did you know that in just $10 a week, you can provide more than $12,000 in funding your child’s future?
A study from News Corp Australia reveal that regular savings and compound interest over many years can get you to save tens of thousands of dollars from your child’s birth to age 18.
Consider this scenario: a 3% interest rate can get you a balance $12,400* by depositing only $10 (or about $1.40 a day). A $20 weekly deposit would yield to almost $25,000. The good thing here is that the amount of weekly deposit can just be minimal but over the years, your balance grows.
“Money you don’t see is money you don’t miss.” – Tony Catt, Director, Catapult Wealth
Set up direct debits where it doesn’t require a conscious decision or involves a human interaction. According to Mr. Catt, children should learn delayed gratification—having small sacrifices today to earn something bigger tomorrow.
Start them small. Make them earn for something to get rewarded in return. From academic achievements to fulfilling household chores, develop this habit to them at an early stage so it will come naturally once they get older.
If you desire a bright future for your child but not exactly sure where to begin, seek the help of a professional finance adviser to get you started with your goals.
*Please refer to this link for the calculations. Link: https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/compound-interest-calculator
*The example calculation is for illustrative purposes only and is not a guarantee of outcome. Lender policy and conditions, fees and charges may apply.
Credit Representative (486927) is authorised under Australian Credit Licence 389328.