Common Questions Parents Ask About Investing for Their Children
Children’s Day may be over, but the real gift we give our children lasts much longer: knowledge, values, and a foundation they can build on.
This week, we’re tackling some of the most common questions parents ask about investing for their children—from where to start, to how to raise financially savvy children. Let’s dive in!
1. What’s the best age to start investing for my child?
The earlier, the better (even from birth). Starting early gives you more time for compound interest to work its magic. It also allows you to contribute smaller amounts consistently without pressure. Think of it like planting a tree—the earlier you start, the deeper the roots.
But it's not just about growing money; it's about growing understanding. That’s why we created MoneyAfrica Kids to help children grasp what’s happening behind the scenes while their parents invest on their behalf.
2. How do I invest for my child when I still have my own financial goals?
This is one of the most honest questions parents ask. Here’s the truth: you don’t have to choose between your goals and theirs, you can do both with structure and discipline.
Start small. Even ₦5,000 or ₦10,000 monthly into a low-risk mutual fund or ETF can grow significantly over time. Set automated contributions so it doesn’t rely on willpower. Think of it as long-term love in action. While you’re building their future, we’re helping them understand what it means through MoneyAfrica Kids.
3. Should I save or invest for my child’s future?
Do both. They serve different purposes.
Save for short-term needs (school fees, uniforms, class trips).
Invest for long-term goals (university, starting a business, even wedding support someday).
Saving is safer and more liquid; investing carries more risk but offers greater growth over time. Pair both, and you'll have a balanced approach. And as they grow, you can show them what’s happening so money doesn’t remain a mystery.
4. What type of investments can I make in my child’s name?
Here are a few options:
Mutual funds
Government bonds
Insurance-linked investment plan
Buying stocks on their behalf
Even though some platforms require the parent to invest “for” the child instead of “in their name,” the intention remains the same—to build a financial buffer for them. And when they ask, “What’s a mutual fund?” you’ll be glad they’re already learning it with MoneyAfrica Kids.
5. What financial habits can I pass on beyond investing?
Money is more than numbers; it's behaviour. Some of the best things you can teach your child include:
Budgeting with pocket money
Delaying gratification (“Do I need this now or can I wait?”)
Tracking spending (even if it’s ₦500 a week)
Setting goals (saving for a toy/book/game)
These small habits plant seeds for long-term confidence. And if you want to take it a step further, we’ve created MoneyAfrica Kids to help children learn about money in a way that’s engaging, age-appropriate, and practical.
It’s one thing to invest in your child’s name. It’s another to invest in their mindset. With small steps and the right tools, you can do both.
Want your child to start learning about money early? Explore www.moneyafricakids.com
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Do you know that we have our own podcast? It’s MONEYTALKS!💚
Here’s a link to listen to all the amazing episodes we have!
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Do you have any questions? You can send an e-mail to info@themoneyafrica.com or send a DM to any of our social media channels.
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We often get questions regarding how to plan your finances to align with your relocation plans, especially for students seeking to further their studies. As always, we have heard you, and we have put together an e-book to help you navigate this. Follow this link, to get your FREE copy of the e-book: The Japa Encyclopedia.
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