Making Cents for our Children

Monday, December 8th, 2008 by Charles Mayfield, CFP®

making-cents-for-our-children

Have you started a savings account for your children?  Perhaps you have put money into a 529 plan for college.  Do you traditionally put money toward their future at the end of the year in the form of a gift?  Let’s take this investment in our children’s future a bit further this year.

Involve your children in the process of receiving and then subsequently investing that money into the market.  Let them see where it goes and involve them in the process.  The sooner they learn to invest for the long run, the better.  You can show them what an opportunity there is in the equity market right now.  Take that money and buy a mutual fund for them.  Think how easy it would be to explain the advantages of the diversification you get when purchasing a mutual fund.

Now you have something to sit down and talk about every year or every quarter with your children.  Who knows, maybe they will want to start putting some of their allowance toward their newfound investment.  Next thing you know, you’re raising the next Warren Buffett.

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