So far, in my “Birthday Bonanza” series, I’ve discussed:
- Why investing for your child at birth is a great idea
- The advantage of investing in the stock market for this purpose, as opposed to a savings account
- Why to invest in an individual stock instead of a fund, and what to look for when selecting this stock
- Teaching your child about investing in stocks in age-appropriate ways
Now, it’s time to take action.
If you have $1000 ready to open your child’s investment account, great!
Saving a thousand dollars, though, is a very challenging task for some. This includes married couples and single parents alike.
However, there are a number of ways to come up with the money.
Here are some ideas:
1) Use your income tax refund to fund your child’s investment account.
2) Save $83 per month for 12 months. The goal of saving for your child’s future should be more than enough motivation to do so!
3) Work a second job, or start a side business, with the purpose of using the first $1000 in profit to fund your child’s investment account.
4) If you are so financially strapped that you can only put $25 a month aside, then put $25 a month aside! Some money is far better than no money.
In the next installment, you’re going to open your account!