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Growing Your Investment Along With Your Kids

February 22, 2012 | Comments: 0 | Views: 148

When he turned to 4, he aspired to be a fireman. At 6, an astronaut. Who knows what he will aspire to be tomorrow?

His aspirations may change but one thing you know for sure, you want to give him the freedom to choose his path and the liberty to pick the education and college that will provide the best tools to shape his future.

But the scroll and mortar board are still a distance dream. College years are far off. Your child is still young. You may feel that you have ample time to start saving later.

However his birthday can quickly pass you by and in no time, your child will be reviewing college brochures. Will you have your funds ready by then? Unfortunately, accordingly to researches, 1 in 5 parents may be ill-prepared as they foresee having to borrow in order to pay for their children's education. Their children's education choices may then be limited to the amount of money they can borrow or only to colleges that can offer financial assistance.

With sound financial planning and by starting early, you can ensure that your child has the option to choose when it comes to quality education.

YOUR CHILD'S FUTURE WON'T WAIT FOR YOUR FUNDS TO CATCH UP: You should not miss out on some of the benefits of saving money as early as you can, such as the following:-

- SUFFICIENT TIME TO ACCUMULATE SUFFICIENT FUNDS: Due to the rising cost of education, the amount that you may need to accumulate for an overseas education can reach as high as USD$100,000 per child. Setting aside regular and disciplined saving or contributions in an education saving plan over a longer period makes it easier for you to reach the amount you anticipated for your child's education.

- THE ABILITY TO LEVERAGE ON THE POWER OF COMPOUNDING INTEREST: Compounding interest simply means reinvesting your interests into your total investment amount. Over time, your savings will grow exponentially, as you will not only earn interest on your principal amount but also on the reinvested interest.

- EVEN OUT UPS AND DOWNS OVER TIME: If time is on your side, you can potentially withstand a bit more volatility in the bid for higher returns. For example, you can benefit by investing consistently in investments, over a longer period of time by applying Dollar Cost Averaging strategy. By investing regularly over time, you may get more units when the price is low and fewer units when the price is high, resulting in a lower average cost per unit.

- PROTECT YOUR CHILD'S EDUCATION EVEN WHEN YOU CAN'T: By signing up for Education Savings and Protection plan early, you may have the assurance that your child's education is not compromised, even if a mishap occurs to you. In some plans, the future contribution may be waived or a lump sum may be paid to relieve your family of the financial burden should anything unfortunate happen to you.

Read on to will help you develop your child's potential from the day he or she is born. It sharing you the fundamental of Early years FUN learning for parents of babies from birth through to the age of six years. You can learn the various stage of unique child development from the articles attached. The intention is that your child should grow up to have truly well-rounded capabilities and to be happy.

Source: EzineArticles
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