Skip to main content

Tips to Saving for a Child's Future

  • Author:
  • Publish date:
Tips to Saving for a Child's Future

It¹s hard to save money as a parent especially in your baby¹s first year. One way that you can start to save is by setting up a DRIP account. According to Vita Nelson portfolio manager, DRIPs is an affordable way to invest in the market and allows you to put money aside each month. If a DRIP investment is started at an early age, they'll receive a higher return when they're older. In fact, DRIPs has outperformed the Dow Jones and NASDAQ over the last three decades. DRIPs could help pay for the kids college or be part of a retirement plan.

Check out more information about DRIPs and learn how they can help you save for your child's future.

What is a DRIP?

DRIPs stand for dividend reinvestment plan. It’s a simple method of investing by eliminating brokers and buying shares directly from a company, allowing anyone to invest in top tier public companies and save for the future. To invest in DRIPs, you don’t need a brokerage firm. That’s the beauty and the ease of investing in DRIPs. It’s a way for you to invest small amounts of money by yourself without the brokerage fees.

Scroll to Continue

Recommended Articles

How to Create a Build Your Own Burger Bar

How to Create a Build Your Own Burger Bar

A burger bar is a fun way to keep your BBQ simple and to turn dinner into a casual party. Giving your family or guests lots of options for toppings and condiments keeps everyone happy. Now that more and more families are staying in, this is the type of meal that feels special. ...read more

waking (3)

7 Tips to Prioritize Your Family's Eye Health

We've all had lots of things on our individual and collective plates. But keeping up with routine doctor's appointments? Well, that's one priority that many of us have bumped to the back burner in light of more pressing circumstances. But, regardless of the ongoing pandemic and ...read more

Caring for Kid's Glasses Tune-Up Tips and Tricks

Caring for Kid's Glasses Tune-Up Tips and Tricks

Wearing glasses makes life just a little more complicated and inconvenient for young children.  My daughter has been wearing glasses since she was two (amblyopia and strabismus) and I feel like I've spent a gajillion dollars on frames and lenses. I've learned a lot along the way ...read more

How to invest in a DRIP?

To invest in DRIPs, you can sign up at www.directinvesting.com to buy a share in your name (or your child's name) and become a shareholder. DRIPs can be established with as little as a single share of stock. Once the account is open, you can invest as little as $25, with no fees if you choose a no-fee company. That means that everyday Americans have the opportunity to become shareholders and invest directly in a company. There are over 1,300 different DRIPs from well-known companies (Johnson & Johnson,3M, etc.).

Who are DRIPs for?
DRIPs are for anyone. It's a great way to save money overtime --especially for those who never thought they could. If you start aDRIP account for your child, at an early age, by the time your child grows up he/she can use it for college or keep on saving for retirement. It's an affordable and feasible way to save money and introduce yourself or kids to investing.

Image placeholder title

Momtrends was not paid for this post. 

For even more Momtrends, follow us on FacebookTwitterPinterest and Instagram

Related Articles