Investing for the future

Investing for a child's future is a thoughtful and proactive way to secure their financial stability and provide them with opportunities. Whether you're a parent, grandparent, or guardian, making smart investment decisions can help set the stage for long-term success. Here are some essential tips on how to invest for a child's future:

Start Early: Time is a powerful ally when it comes to investing. The earlier you begin investing for a child's future, the more time their investments have to grow and compound. Even small amounts invested consistently can make a significant difference over the long term.

Set Clear Goals: Determine the purpose of the investment and set specific goals. Are you investing for education, a down payment on future a house, or a general financial cushion? Knowing your objectives will help you make informed investment choices.

Assess Risk Tolerance: Consider your risk tolerance when choosing investment options. Generally, long-term investments can afford to take on more risk, as there is time to recover from any potential downturns. However, it's crucial to strike a balance between risk and potential returns based on your comfort level.

Diversify the Portfolio: Diversification is a fundamental principle of investing. Spread the investments across different asset classes such as stocks, bonds, mutual funds, and real estate. This strategy helps reduce risk and increases the chances of achieving stable returns.

Consider Tax-Advantaged Accounts: Utilize tax-advantaged accounts like 529 plans or Education Savings Accounts (ESAs) to save for a child's education expenses. These accounts offer tax benefits and can help accumulate funds specifically earmarked for educational purposes. See the note at the end for more information on this!

Contribute Regularly: Consistency is key in investing. Make regular contributions to the investment accounts, whether it's on a monthly or annual basis. Set up automatic contributions to ensure a disciplined approach and take advantage of dollar-cost averaging.

Reassess and Adjust: Regularly review the investment portfolio to ensure it aligns with your goals and risk tolerance. As your child grows older, adjust the asset allocation to become more conservative and protect the accumulated funds.

Teach Financial Literacy: Alongside investing, educate your child about money management, budgeting, and basic financial concepts. This will help them develop healthy financial habits and empower them to make informed decisions in the future.

Involve your Child: As your child gets older, involve them in the investment process. Explain the concepts, discuss investment decisions, and encourage them to take an active interest in their financial future. This involvement can foster a sense of responsibility and ownership.

Seek Professional Advice: Consider consulting a financial advisor who specializes in family financial planning. They can help you navigate the intricacies of investing for a child's future, provide personalized advice, and ensure your investment strategy aligns with your specific circumstances.

Investing for a child's future requires careful planning, patience, and a longterm perspective. Starting early, setting clear goals, diversifying the portfolio, and teaching financial literacy are all crucial steps. By following these principles and adapting to changing circumstances, you can lay a solid foundation for a child's financial security and support their future endeavors.

What is a 529 Plan?

A 529 plan is a tax-advantaged savings plan designed to help individuals and families save for future education expenses. Named after Section 529 of the Internal Revenue Code, these plans are offered by states, state agencies, and educational institutions. The primary advantage of a 529 plan is its tax benefits: contributions to the plan grow taxfree, and withdrawals used for qualified education expenses, such as tuition, room and board, books, and supplies, are also tax-free. Additionally, some states offer state income tax deductions or credits for contributions made to their specific 529 plans. With flexible contribution limits, a wide range of investment options, and the ability to use funds at eligible educational institutions nationwide, 529 plans provide individuals with a powerful tool to save and invest for their or their loved ones' educational future.

Community Calendar

Check out all of the great things we have to look forward to this fall! Please note that dates and times are subject to change.

Ongoing

Chico Friends of the Library Book Sale

Every Saturday, 9-11am

Come to the Chico Library and stock up on great reads for the home or to fill your favorite Little Free Library.

Chess Club

Every Saturday

Challenge your mind and enjoy the game of chess at your local library. Chico Chess Club is from 10:30am-noon and Paradise Chess Club is from 11am-4. Battle your friends and family for the ultimate bragging rights.

Afternoon Kids Club

Every Wednesday 3:30-4pm

Looking for a great way to spend an afternoon? Join your friends for awesome games, LEGOs, and more. Each week is a different activity at the Oroville branch of the Butte County Library

Community Resource Room

Every 2nd and 4th Saturday of the month

Come out for free basic art supplies (paint, glue, paper, and more), learning materials, activity ideas, and premade resource kits. Open to all; no registration required. Check their calendar for sites, between Gridley, Oroville and Chico, at www.valleyoakchildren.org/home/calendar

Kids Tumbling Class at Paradise Stronger

Every Monday and Wednesday 3:30-4:20pm

Ages 4-12. Tumbling classes utilize an array of movements, exercises and stretches to help kids improve muscle strength, and flexibility. These exercises help build endurance, balance, agility and coordination while strengthening the whole body.

Back to Giving Supply Drive

Ongoing Until August 14th

Chico Marketplace is kicking off their annual Back to School Back to Giving, local student supply drive July 14th through August 14th. Bring new school supplies donations to participating retailers, local businesses, and all Chico Marketplace events. Enter to win a $500 gift card to the mall retailer of your choice. All donations will be