An alternative way to save for your children’s future is a paid collaboration in conjunction with The Royal Mint. With all this talk recently of the cost of attending university and how many young people can not afford the deposit on their first home got me and the husbeast thinking about saving for our children’s future. We are not a cash-rich family, in fact, we haven’t got any substantial savings yet for the boys. However, that doesn’t mean it is too late. It seems that according to research by The Royal Mint we are not alone and that on the average UK Household save on average £166 a year compared to £1,500 in 1974. It seems that 60% of us just do not have the money to invest with 40% of us citing that they do not know enough about investing. Also, a staggering 43% worry that they will lose money.
An alternative way to save for your children’s future
So I have teamed up with The Royal Mint and Holly Mackay to try and bust some of these investment myths and offer some advice on an alternative way to save for your children’s future.
Holly’s top tips for investing
- Expensive debt such as credit cards or payday loans should always be cleared down before you start to think about saving and investing.
- Inflation is much higher than interest rates. It’s a good idea to build at least three months’ income in cash for emergencies, but holding long-term savings in cash isn’t always the best idea – inflation just relentlessly eats away at this.
- Everybody can put savings into an ISA which is basically a tax-free account allowing you to save up to £20,000 a year. You can mix and match a cash ISA with a stocks and shares ISA, paying a bit in both each year if you want to.
- There’s no such thing as a free lunch – beware of ‘too good to be true’ investment schemes which claim to guarantee huge returns. If unsure, stick with big brand names which are upfront about what they charge and what the risks are, as well as the potential gains. If you’re making about 5% a year from a mixed bag of investments, you’re doing well.
- For those who find the idea of investments daunting, there are plenty of options to make it easier such as investing in The Royal Mint Signature™ range. Investments can start from as little as £20, allowing customers to purchase a fraction of a gold, silver or platinum bullion bar.
Why Invest in Precious Metal?
At the moment interest rates are not very high and the inflation rate is about what interest you can get simply and on a low-risk basis on the high street which means that your cash balance will slowly lose value.
I really love the idea of being able to invest in precious metal with The Royal Mint Signature™ range I know that when we looked into buying some as a christening gift in 2006 that it was challenging as I thought you had to buy either a 1oz coin or bar, The Royal Mint’s Signature™ platform means that you can now purchase precious metals like platinum, gold or silver for as little as £20.00. The platform makes it super easy to invest and you can sell your precious metal investments back to The Royal Mint any time. Another plus is The Royal Mint look after your investment at their secure site.
I like lots of people would love to be able to invest in bricks and motor such as a house but do not have the cash available to do that. But I do have £20 a month available or even a couple of times I year to invest and £20 at a time can really add up.
I do like the idea of investing in gold bullion. Putting money in a traditional savings account doesn’t always seem like the best thing these days with interest rates so low.
Thanks for the great tips!
I also advocate living below our means – that should leave some breathing space for emergencies. The savings goes a long way too – what with inflation and what not. Having said that, it truly is a struggle to hold back on little luxuries that would otherwise brighten your day. 🙁