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Saving For Your Kids

Education HUB article

5 minute read

Pocket money for the long-term

Saving for our children’s future is a financial goal for many parents.

Putting money away for a great school or even their first car; whatever the motivation, we want the best for our kids. Most start with a bank savings account, they are easy to open, simple to operate and even easier to add those extra dollars into. However, in this low rate environment, a savings account may not be the only option.

A long-term investment may be another way to make the most of saving for your children. A managed fund can help you do just this; giving you the opportunity to participate in investments that may not be available to individual investors.

Managed funds work by pooling your money with other investors, which is helpful as it means you can start with a low initial investment deposit and build upon this over time with the option of a regular monthly savings plan.  You can also take advantage of compounding returns by reinvesting your distributions.

Pocket money example

Pink piggy bank with two stacks of coins in front of it.

Starting with as little as $500 initially, together with a regular savings plan of $50 per month, over 21 years, could amount to $23,643 (this assumes a return of 5% p.a. and that you reinvest your distributions).

In this example, your regular deposits would total $12,600 with an investment return of $10,543 (according to ASIC’s compound interest calculator).

Please note that this example is for illustration purposes only and is not an indication of actual returns.

 

We have a dedicated and experienced team to help you grow your children’s investment savings. Getting started is easy. 

You can use our Investment Style Selector tool to help you discover what type of investor you are, read one of our other self help articles below, or complete this form to have someone give you a call to discuss your circumstances and see what may suit you.

Not sure what type of investor you are?

Answer a few questions to find out. 

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Sandhurst Trustees Limited ABN 16 004 030 737 AFSL 237906 (Sandhurst) is a wholly owned subsidiary of Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL 237879. Each of these companies receive remuneration on the issue of the product or service they provide. Sandhurst is the responsible entity and issuer of the managed funds available on this website, and is also the trustee and issuer of the Bendigo superannuation products. Investments in these products are not deposits with, guaranteed by, or liabilities of Bendigo and Adelaide Bank and are subject to normal investment risk, including possible delays in repayment and loss of income and capital invested. Before making an investment decision in relation to one of these products you should consider your situation and read the relevant Product Disclosure Statement available on this site.

Sandhurst is the issuer of the commercial lending products and the provider of any traditional trustee services available on this website. The Bendigo Funeral Bond (“the Bond”) is an investment product issued by Australian Friendly Society Limited (“the Society”), ABN 29 087 648 851 AFSL 247028, with benefits provided by the Society’s Funeral Benefit Fund established under Schedule 1, Rule E of its constitution and administered by Sandhurst. The Travel Protection Plan is issued by AIA Australia Limited ABN 79 004 837 861 AFSL 230043. The Society is associated with the Bank and its related entities. Neither the Bank nor any of its related entities guarantee the repayment of capital invested or the investment performance of the Bond. Information is correct at the date of this document and is subject to change.

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