A big mistake in celebrating your child birthday is to spend huge amount of money for the party. When your child is still young, he will not appreciate the celebration. Most of the cases, the reason of celebrating luxuriously is to impress our friends and family that we can afford it.
For me the best way to celebrate birthday with your kids is to express gratitude to God for another year of your child’s life.
I firmly agree of what Oprah Winfrey said, “The more you praise and celebrate your life, the more there is in life to celebrate.”
In fact, every time you thank God or to the Universe, the more blessings, more life and good health that you will have.
Just recently, I noticed that most of our family friends are celebrating their kids’ birthday in a hotel or expensive restaurants.
Then after the celebration they realize that what they spend for the party is not worth it.
Instead of spending money for birthday celebration, you can put that money into investment or for your kid’s education.
Smart Ways to Use Your Money For your Kid’s Future
Smart parents are those who plan and consider the financial future of his or her child.
Actually, spending money for investment or education funds is the best gift you can give to your child.
Remember that what you do today will affect the future of your child.
1. Invest in stock or mutual funds
Keep your money work for you through investing in stocks or mutual funds. My best tip is start with a little and let it grow.
Again research and educate yourself in this kind of investment before jumping in.
Let say you want to spend $2,500 for birthday party and instead you will invest it.
Assuming 10% interest gain annually and after 10 years it becomes $6,484. If you let it grow for 15 or 20 years, the future amount is $10,443 and $18,618 respectively.
That is the magic of compounding interest.
2. Start saving for college funds
Another smart way to use your money rather than spending it for birthday party is to start saving for college funds.
Education is one of the best legacies that you can give to your kids.
This is to ensure that finances are not a burden when you’ll send your children to college.
Earning a college degree boost your child chances of getting high paying jobs. With a higher education, it gives advantage or edge for better opportunity and promotion.
By doing this, you are helping your child/children to avoid student loan or debt as well. Student loan is bad and stressful as soon as your kids start paying it.
3. Buy gold coin or silver bullion
Buying gold coin is very easy. You can start buying gold once a year. As of this writing the price of American Gold Eagle one ounce coin is $1,245.76.
You can buy two coins for less than $2,500 budget.
It is an excellent option to invest on actual gold. In time of crisis gold can easily be converted into cash.
Gold is acceptable in most countries of the world as money.
The average price of gold per ounce on year 2005 is $444.74 and the average rate for 2015 (March 23, 2015) is $1,221.12.
Historical data shows that gold price is keep increasing significantly.
If you can hold your gold coin for ten years probably you will earn $700 per ounce.
Celebrating birthday party is costly and tiring. It will give memory and happiness for your kids.
However, if you spend the same cost of birthday party into savings or investment, it certainly will help the financial future of your kids.
The best thing parents can do for his child is to plan and prepare his/her future wealth.
Lastly, I will share this proverb from Confucius; “A man who does not plan long ahead will find trouble at his door.”