If I gave $100,000 to your 13-year-old as a birthday gift, what would be the best way to spend the money?
Typical African parents, especially mums, could collect huge cash gifts from generous relatives on behalf of their kids, and the children may never get to see that money or dare ask for it anymore.
However, as children grow older into teens, the question of who or how to spend money (gifts) have. Other questions could spring up. Like how much money a teenager is allowed to keep, should their money be deducted or not, and so on.
This is usually a big dilemma for parents, especially those who are not financially dependent.
However, this article presents a few pieces of advice on the things that can be done with huge financial birthday gifts. Things that will work for this generation and will favor both the teens and their parents.
3 wise things you can do. Yes, 3 things only. Also, you’ll get to know the best ways to get financial aid for your teens, especially for college.
So keep reading!
READ ALSO
3 things to do with your teen’s Birthday Money
$10,000 is not small money at all, even for a sixteen-year-old. They still need some guidance and advice on spending
This is not all about saving money. It’s also about keeping your little angels for huge money that may make them make wrong decisions.
So whether you are financially capable or not, good advice remains good. Take it and spare yourself future heartache.
Save for college
This is usually the general advice for every parent or teen that gets huge money for birthday gifts. Save for college
It shouldn’t surprise you much because anyone who has gone through college knows that college is seriously expensive and financially unstable parents will need all the help to see their child through.
You can use the platform to check out the best options for college savings. Also, note that these savings are usually tax-free, which makes it better.
So instead of snatching the money cruelly, it is good to explain to your teen how much college is important and why you should save for it.
Explaining the details of the money will relax the child and make him not feel cheated.
Invest for the future
If your child already has savings or you feel savings is not the right way to go. You should try investing the money.
This is one of the things you can do with your kid’s money. However, the constraint here is that you cannot buy stock or bonds in your child’s name.
However, you can still save on his behalf and teach him how to invest early in life. Who knows, these stocks may come in handy in the future.
Open A Savings Account For Him
This doesn’t necessarily need to be specifically for college. It can just help with any heavy, demanding need for the child, maybe college too.
Opening an account or using a piggy bank is a good way. It is one of the things you can do with your teen’s money.
And you can let the child save and spend himself while you monitor. This is also a good way to teach a child how to balance spending money or to save money.
READ ALSO,
The Best Choices For Financial Aid
Finance aid is one thing college students who are not very privileged look forward to getting. In getting these, it can become easier to go through college.
Scholarships
This is one of the best choices for financial aid. However, it gains scholarships. You will need to go through some procedures and be eligible for scholarships
when you are awarded a scholarship, you will not need to back the money, however, you will need to obtain a strong academic record and match up to any of the scholarship criteria.
Grants
Grants are not only for college students but also for businesses. You can get a grant within your area and do not have to pay it back.
Work-study
Work-study is a program where students can work and get paid to help their financial situation. Sometimes this money is directly put into their educational expenses.
In conclusion, college is one important thing to your teens, so while you spend, put that at the back of your mind. However, if you are buoyant enough, you should not give your kid a huge sum, even if it is a gift. Saving or investing is not bad for things you can do with your teen’s birthday money.
