There is little doubt that the latest heir to the throne will have to worry little about financing a university education or buying their first home.
You can’t start saving too early to reap the benefits of compound interest
The newest Royal, a brother or sister for Prince George and Princess Charlotte due in Spring, will probably never need an overdraft, a loan or a credit card to see them through a lean period.
But for other children, starting a savings plan on their behalf as soon as they’re born can make all the difference for their financial future.
If there was one tip we would share with any new parent or grandparent, it has to be Einstein’s so-called ‘Eighth wonder of the world’ – the miracle that is compound interest!
He said it was the greatest mathematical discovery of all time, but it’s essentially a very easy concept to understand. Start early, save regularly and by the time your youngster comes of age, there’s a substantial pot of cash built up in their name.
Start early
The key is starting early. If you save £100 a month for 18 years and get an average 3% interest, it would be worth more than £28,800 by the time you buy them their first legal drink.
That’s pretty impressive. Where you put your child’s regular saving is another decision to make. Junior ISAs are a safe home for their money until they turn 18 or you may decide to invest on their behalf in a more rewarding scheme.
Whatever route you take, the miracle of compound interest will always help your child live like a Prince (or Princess) and not a pauper!
For advice on savings plans, junior ISAs or any other financial planning for your and your child’s future, visit www.robertnicholas.co.uk or contact 01952 820155