best way to invest for child future

Best way to invest for child future ( Top 8 Pick)

When it’s all about of your child future, so nothing is more than your child. We know you’re very much concern about your child’s bright future. Doesn’t it? Even every parent does.

Invest on a right place is a great way to make your child’s future shine. Even you are responsible for this. But, How to invest, where to invest, what is the best place? What is the best investment plan for child future ? These questions are the matter.

Sure thing, if you are doesn’t know about it. To make your life easier and release your tension, we are listed some best way to invest for child future.

Right now investment depends on your child age, what your child does. Not only that, it also depends on how long you want to invest. Let’s check below the Top 8 best ways to invest for child future.

No-1 ISAs junior account or Best investment for new born baby

If you are a small money owner and want to avoid tax from the investment, so ISAs junior account is the perfect solution that you are looking for.

Benefit of ISAs junior account-

  • ISA’s junior totally tax free saving account.
  • If your child age is under 18, just go for it.
  • Without tax on interest. Not only interest but also share and stocks.
  • No tax on capital growth.
  • Your invest or saving limit is 4368 uro this year.

No-2 : 529 plan for college saving.

Are you thinking for long time invest? So, don’t miss the 529 plan. If you are concern about your child’s education and want to make your one’s education secure than 529 plan is going to your favorite choice. This would be long term gift for babies

Benefit of 529 saving plan:

  • You can use the saving money at any kinds of school located in U.S.
  • There is no monthly and yearly income restriction for saving money on this 529 plan. That means anyone can invest money.
  • Not only that, you can also withdrew the money when it’s time to pay for college related item like books, tuition, hostel fee etc. Of Couse it would be totally off tax. Smiling.. Right?
  • You can change the 529 benefit to another family if you want. Don’t worry about tax. You won’t get any tax fire.

No 3. 529 plan for prepaid tuition:

Don’t want to get risk of investing? This might be for you. By this prepaid plan you can save money for your child education without any risk.

Benefit of 529 prepaid tuition plan-

  • Save money without any risk.
  • The great benefit we think, you can lock your child’s future education cost at current rates.


  • Please check your state. All of the state doesn’t offer this service.
  • This might be cut your pocket if your child chose any other state that is not preferable.

No 4. Roth IRA plan

If your child is a quite earned person now, so this plan perfectly goes with him/her. This offer is especially for teenagers.

Benefit of Roth IRA plan-

  • Part time is allowed to getting this plan.
  • They will get off tax money when they comes to their retire.
  • They can also use the fund for their college purpose. As like 529 saving plan.
  • They won’t face any problem for quick withdrew.

No 5. UGMA/UTGA custodial account

Want a lock down account that keeps your saving lock? So, we recommend considering to UGMA/UTGA custodial account.

Benefit of UGMA/UTGA custodial account-

  • You can only close the account for your child’s education purpose.
  • You can make the account custodial and lock.
  • Your child needs legal age to use the account.
  • When it comes to your child legal age then the fund will transfer to your child name.

No 6. Brokerage account

Looking a saving account that can be used for multiple purposes? So, where are you off to? Just go for the account.

Benefit of Brokerage account-

  • This account not for education purpose and there are no requirement of education for the account.
  • You can invest on multiple purposes.
  • Allowed to withdraw fund any time.

No 7. Savings account

The most classic and traditional account is called saving account. You can save the money here but matter of sorrow their interest rate is too low also you’ve to provide tax. The interest you earn from there would be as same as your tax value.

No 8. CD ladder

If you want to lead a better life without suffer so that is to say you should focus on CD ladder. CD ladder means certificate of deposit. For the CD ladder you can buy multiple certificates.

Benefit of CD ladder-

  • You can buy multiple certificates for deposit.
  • You can make short fund for multiple account.
  • Another key point is when one deposit would mature so you can replace it with another one.
  • You need to just keep repeating, keep saving.

Final thought-

All of this point to the conclusion that you should think about your budget, time frame also job. When it’s all about your child future, we recommend you to consider choosing UGMA/UTGA custodial account. On this custodial account, your investment would be locked until your child withdrew the amount.  On the other hand if you salary is little tight, so you can go for the CD ladder. There you can deposit small amount of money. That is great point for you.

Furthermore, if you want to ignore tax problem for both of your child and you, try to look at 529 saving plan again. That might be going with you fairly. We don’t know what your child age is..! But if your child’s age is under 18, so you can focus on ISAs junior account. Not only you could get free of tax on interest but also you will get free of tax on you capital investment amount.

Where are you off to? We’ve just another recommendation for you. For your multiple purpose invest, just move to the Brokerage account. It’s not only for education purpose. You can deposit here as your demand.  Hope we found the Best way to invest for child future and where to invest.

Keep in mind: We are not responsible for your money and investment. We are just suggesting you. Your money, your responsibility. Now it’s your turn.

Leave a Comment