It is never too early to start, and with a wide range of options available, you can choose the one that best suits your needs and goals. We take a look at some of the most popular options for investing in your child's future.

Education savings plans

The cost of education is one of the largest costs parents in South Africa will face. Education saving plans are some of the ways to help most parents when it comes to providing their child with quality education. This can be in the form of unit trust funds, tax-free savings accounts, and life insurance to name a few to ensure that your child will be covered no matter what may happen to you. 

Stocks and bonds

Another option is to invest in stocks and bonds through a brokerage account. This gives you the ability to diversify your investments and potentially earn higher returns over the long term. Keep in mind that investing in the stock market does come with some risk and it is important to do your research and consult with a financial advisor. 

Life insurance

One of the basic investments all parents need in place is a life insurance policy that will financially protect their child(ren). A life insurance policy can also be a way to invest in your child's future which can be used for a variety of purposes, including education expenses, starting a business, paying off debt, sustaining their lifestyle or providing for their family.

Property 

Investing in real estate can be a good option for those who are looking for long-term stability and potentially higher returns. You can consider purchasing a rental property or investing in a real estate investment trust (REIT). However, it's important to keep in mind that real estate investments also come with their own set of risks and challenges.

Trusts

Trusts can also be a good option for investing in your child's future. A trust can provide financial security for your child and give you control over how the assets will be managed and used. You can even go as far as creating a legally recognised will that can help you choose at what age you would like your child to have access to the funds.  

Savings accounts with a good interest rate

If you are looking for a low-risk investment option, consider putting money into a savings account that comes with a good interest rate. 

Regardless of the investment option you choose, it's important to start early and regularly contribute to your child's future. By doing so, you can help ensure they have the resources they need to achieve their financial goals and live the life they want.