As a grandparent, there’s no greater joy than seeing your grandchildren thrive. One of the most meaningful ways you can contribute to their future is by providing financial support and guidance.
Here’s how you can take care of your grandkids financially while you’re still around to see them benefit.
Start a Savings Account
One of the simplest ways to support your grandkids is by opening a savings account in their name. Many banks offer special savings accounts for children with no fees and attractive interest rates. This can be a great way to teach them about saving and the value of money. Websites like Canstar can help you compare different children’s savings accounts to find the best one for your needs.
Contribute to Their Education
Education is one of the best investments you can make in your grandkids’ future. Consider setting up an education fund or contributing to an existing one. In Australia, you can look into education bonds or scholarship plans. Websites like ASIC’s MoneySmart offer valuable information on how to save for education, including tips on investment options and tax benefits.
Teach Financial Literacy
Empowering your grandkids with financial knowledge is a gift that keeps on giving. Share your experiences and lessons about budgeting, saving, and investing. There are also excellent resources available online. The Australian Securities and Investments Commission (ASIC) provides educational tools and resources to help teach kids about money.
Set Up a Trust Fund
If you have substantial assets, setting up a trust fund can ensure that your grandkids are financially secure in the long term. A trust fund allows you to set specific terms for how and when the money can be used, providing both control and security. Speak to a financial advisor to understand the best way to set up a trust fund that meets your family’s needs.
Provide for Their Future
Consider contributing to their superannuation (retirement fund). In Australia, you can make voluntary contributions to a child’s super fund, which can grow significantly over time thanks to compound interest. For more information on how to do this, visit the Australian Taxation Office (ATO) website.
Share Your Financial Wisdom
Your life experiences and financial wisdom are invaluable. Take the time to share stories about your financial successes and mistakes. Practical advice, such as the importance of living within one’s means, avoiding unnecessary debt, and planning for the future, can set your grandkids on a path to financial independence.
Create a Legacy
Finally, consider how you want to be remembered financially. Beyond leaving money, think about what financial values you want to pass on. Write a letter or create a video sharing your financial philosophies and the importance of generosity, hard work, and financial prudence.
