How to Secure Your Child’s Future in Tough Financial Times

“Times are tough” might sound like a cliché, but we are indeed living in a period of entrenched economic stagnation and worrisome political change. Despite the economic uncertainty, you still need to find way’s to secure your child’s future. Here, we discuss a few ways you can overcome the economic malaise to ensure your kids have financial support.

Start as Early as Possible


To achieve long term financial security, you need to start building up assets for your kids as soon as possible. It is never too early to start acting. Begin by teaching your children the basics of finance: instil in them an understanding of the value of saving; teach them about how stocks and banking work; try to get them to invest their money in the future rather than the now.

Take Out a Good Life Insurance Policy

If you’re the breadwinner of your household and something unexpected happens to you, you don’t want your kids to suddenly find themselves out of pocket. Make sure you have a high quality insurance policy with your kids named as beneficiaries.

Invest in Low Risk Stocks

Buy a nice chunk of a low risk stock, something that shows good, consistent very long term growth. Oil is a common choice, or you could invest in an index that tracks one of the major stock markets. Make sure to get a dividend reinvestment plan (DRIP); this plan takes your dividends and uses them to buy more stocks, growing the size of your equity over time.

A DRIP like this is very much a long term investment. You’ll want to hand it over to your kids once they reach a responsible age, and instruct them not to sell the shares until they reach retirement age. This kind of low risk stock needs decades in order to make a sizeable return; but if you stick with it, you can vastly increase your asset value.

Invest in Property

There are a few ways to help your kids get on the property ladder. First, you can buy the property yourself as buy to let. You’ll need to pay a deposit of around 25%, and get a high rent in order to cover the mortgage payments. Nonetheless it can be done, and the growth in the value of the property over several decades should more than make up for the cost of obtaining it.

Another way, if you don’t want to buy the property yourself, is your child could get a “Buy for Uni” mortgage. You’ll need to provide the collateral for this option, in which your child gets a loan from a building society for 100% of the property’s value and then becomes a landlord, using a tenant’s rent to pay off the mortgage. This option is riskier than the first.

Help Put Your Child Through University

Obtaining a degree in a highly desired subject such as engineering, law or medicine will vastly increase your child’s lifetime earning potential, as well as providing them with very useful networks and transferable skills that will make them much more employable. A good degree is an asset that is very worth investing in. Encourage your child to go to university, and support them financially along the way.

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