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One of the best ways to invest in your child's future provides them the ability to achieve the dreams that they reach for when they are starting out their lives. Knowing exactly where and how much to invest in your child's future can create quite a challenge.

Many of the options available to parents or guardians today make the decision process very confusing. When funds get limited, and parents or guardians want each penny they invest to go as far as it possibly can. Choosing quality investments for your child's future means making the wisest investment choices that will benefit your child.

In this article, we discuss 10 of these investments and how they will help you when investing in your child's future:

Start Up A College Savings Account

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Thinking about how you will help your child save for college crosses the mind of every parent. The Labor Department statistics by the Economic Policy Institute did a study in 2016 that found that students who obtained a 4-year college degree made about twice the hourly wage of their peers who did not have a college degree.

These statistics prove that college degrees still hold a place of prestige in society, even in today's job market. Just remember never to put saving for a child's college fund before saving for your retirement.

Consider saving for both their college and your retirement a balancing act. Consider how much you can reasonably put into each account on a monthly basis. Determining what you save for each will depend on your income and expenses. There's no one size fits all recipe for the amount that you must put away.

Consider Pre-Paid Tuition For Your Child

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Most states offer a program that allows parents to pre-pay tuition for their child to attend a state school in the future. Parents get a lower rate as they pay the prices that children would pay to attend college today. In 18 years when their children get ready to ready to go to college, they will have saved a substantial amount of money considering that college costs continue to increase annually. After you pay that money for tuition that the state guarantees that money.

Consider Using Your Employer's 529 Savings Plan

Use your company's 529 Savings Plan makes another way to invest in your child's education. The funds put into a 529 Savings Plan takes the money automatically taken out of your paycheck as a payroll deduction. Companies may offer small, private $1,000 to $2,000 scholarships to employee's children to further defray the costs of attending college.

Investors have recommended starting a 529 Savings Plan for your child, and expanding their savings from there. 529 Savings Plans help a family find the necessary savings in their budget. Then they can work from there and continue saving for their children's future through other savings methods.

Invest In A Brokerage Account For Your Child

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A brokerage account provides one of the most flexible ways that you can invest your after-tax income for your child's future. Brokerage accounts can have the deductions for this account taken directly from their paycheck, so they will never miss the money. You can choose to contribute on a regular basis that fits your schedule.

The most common frequency people choose when investing in these accounts occurs bi-weekly. If you have 10 or more years left to save, putting a moderately-aggressive amount away at a higher return proves the best way to make the most out of your investment.

Get A Life Insurance Policy For Your Child

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Discussing your family’s unique financial needs, a financial planner will what kind of life insurance policy fits your needs makes for a great start. They can guide you on what plan will meet your personal needs. Consider your life insurance policy a way to ensure that your child gets taken care of in the future.

Invest In Bonds & CDs

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Investing in bonds & CDs allows you to save money for your child's future that will gather interest and grow over time. Interest rates have begun to improve, and that makes it a key time to make such investments for your child's future. Relatives can also purchase bonds or CDs for your child as gifts rather than buying more games and toys that sit and collect dust. 

While interest rates have dropped substantially over the last decade, bonds and CDs still make a wise investment for a conservative investor. Reinvest the interest you receive as your bonds & CDs mature.

Putting the profits back into more bonds & CDs will help your child's portfolio continue to develop. By the time the child gets ready for college or to get married, they can easily have a substantial amount of money available to them to help them.

Ask Family Members For Financial Gifts:

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When relatives ask what your child wants or needs for a holiday or birthday gift, ask for a check or contribution to one of your child's savings accounts. Rather than spending lavishly on toys, games, and other things that your child does not need, these financial gifts will help your child have a brighter future.

It's not saying that you never give your child toys or a game as a gift, but rather suggesting that instead of spending money on excessive material possessions, consider asking your family to invest in your child's future.

Asking family to contribute to your child's savings account, college savings, or an insurance plan provides meaningful gifts that ensure your child has the best future possible.

Give Your Child An Allowance:

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Giving your child an allowance teaches them about responsibility and managing money. Requiring the child to do a few (age-appropriate) household chores has become common practice.

It shows children they have the power to work for the money they want. Teaching these lessons at a young age helps empower that child to understand how they can work for their money in the future.

Open A Savings Account For Your Child:

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Opening a savings account for your child will help them learn the importance of managing and saving money. A parent can open a savings account in their child's name at any time. It's never too early to open a savings account in your child's name. Specifically, ask your bank about a custodial savings account.

When your child becomes old enough to do chores around the house to earn an allowance begin to talk to them about responsible money management. Discuss the importance of saving money with your child.

Experts recommend that you should keep a minimum of 20 percent of your income set aside for savings. Passing this wisdom on to your child soon as they can understand the concept of saving money will help your child set themselves up for a brighter future.

Sell Things Children Outgrow:

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As you sell off items that your children have outgrown, put that money aside to invest in the child's future or to buy what your child needs right now. Sell things such as your child's old clothes or snow gear to parents with younger children who will use the clothing.

Items such as your child's old crib, stroller, or changing table can garner some additional income as other people who need these items will buy them from you at a discount.

Determining How You Want To Invest In Your Child's Future:

No matter which of the above ways you choose to use when investing in your child's future, the point remains that your children need to get financially prepared for what will come. While everyone has a different level of income, and some parents or guardians will be able to put away more money than others with the point that you want to start early.

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Starting to save for your child's future soon after birth means that you have far more time to invest than someone who waits until their child reaches 15 to start the saving process. Even if you have a lower overall income, you can end up saving more money than the wealthier families who started saving much later. 

Setting your child up for future success doesn't just rely on wealth, but on strategic planning that starts in the child's infancy. Families who start planning for the future when their children are still infants have brought one of the most precious gifts their investment needs: time.

This time allows the invested money to grow and ensure that the child has everything they need when they reach the time in their life when they will go on to trade school/college, get married, buy a home, and begin living their lives.

These proper investing techniques ensure that parents and guardians can live the rest of their lives knowing that their child can go about their lives and succeed.

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