So when do we start? What are some of the best investments we can do to assure reasonable finances for children when they grow up?
Re: College Funds/Investments for children
I started them for my kids, but they are all down now. 
Re: College Funds/Investments for children
yeah i know :hinna:
What are some good options?
I should have inherited tons of money or should have been born in better times. 
Since I do not have control on both of those things , I am thinking to start delivering pizza , or fix computers , or something to make some extra bucks. :hinna: Today I spent 3 hours fixing computer network of one of my friends and made a couple of his computers faster for free. I think I should start with him tell him to start paying me and get some more clients like him. He makes millions with the help of that network of computers.
Oh well I am trying my best Allah will take care of the rest. Inshallah.
Re: College Funds/Investments for children
Well, diversifying is always a good option.
The other day, a friend’s kids were over at my place for half a day learning some software for their school project. My friend actually offered to pay me but I refused 
. Next time I’ll be more sensible. 
So how’s this Gerber Life Plan? My daughter sees the ads for it and is asking me why I don’t have it for her future
Re: College Funds/Investments for children
lol, thats cute! I signed up all 3 boys for the Gerber grow-up plan. Its very inexpensive - we pay about 150 for a year for all 3 boyz. You can still sign up for it until age 14. Its actually life insurance but also accumulates cash value. Its not something that will pay for a college education but the extra money will be there for them if they need to buy a car, finance buying a house etc.
We also have a college fund for each of the boys...its taken right out of hubby's paycheck so we hardly notice that we're paying into it. Yes, the fund is really down right now but hopefully the market will recover before the boys reach college age!
Re: College Funds/Investments for children
I was hoping to buy some real estate and renting it out. (Let the rent pay off the property).
By the time both of them hit college. (they will only by a year apart) - I could sell the property and send them to college.
Everyone has advised me to hold off on buying property for about 3-6 months.
Re: College Funds/Investments for children
how does gerber grow plan work? This is the first time I am hearing about it
Re: College Funds/Investments for children
It really isnt a college savings plan. Its life insurance…you pay yearly premiums, they pay you interest on it and it accumulates a cash value over time. When the kids become adults, they will keep paying the same low premium no matter how old they get. Ie., right now, its about 50 dollars a year per child…if you were like 30 or 40 and wanted to buy a life insurance policy, it would cost vastly more than that. Anyway, heres a link with more info on the gerber plan
Child Life Insurance—Child Term Life Insurance Rate Information
- Start as early as possible.
- Look for 529 plans. Depending on what state you live in, you might get tax breaks.
- Invest in a prudent mix of stocks & bonds. Contrary to popular belief, now is a good time to buy.
This website provides good info on 529 plans for different states -
Hi all,
No kids yet but I have an interest in investing; this is my two cents:
1) 529 plans are great. When I have children I will max out an Education IRA that I'll open through Amana Mutual Funds (an Islamic mutual fund company in America--they're terrific) and then contribute about the same amount to a 529. I will probably go with the Utah state 529 as they have the best selection of funds/lowest fees (you can open a 529 in any state, not just your own, and use the funds in any state). Utah offers Vanguard funds which I think are the best of the non-Islamic mutual fund offerings.
* An Education IRA can be used to pay for private elementary, middle school, or high school as well as college!
* A 529 can be transferred to any other relative student, so if the child doesn't use up the whole amount or decides not to go to school, the funds can be used for a sibling or even cousin, niece, nephew, etc.!
2) I personally would not do the Gerber plan. Very religious folks will probably want to stay away from life insurance altogether. I am personally not against life insurance but I believe that it is the parents, not the children, who need life insurance. The purpose of life insurance is to cover the lost earnings should the individual die. So for a working spouse, take out a policy that has a value equivalent to 7-10 years of their annual salary. For a non-working spouse/stay at home mom, I would look at perhaps a $150-250K policy--enough to cover some child care in the immediate term and college expenses later on. If you choose to insure your children, you really don't need any more than the $7-10K that it would require, if Allah forbid, they die and you need to pay for a funeral.
3) If you want to keep cash somewhere that's safer than a mutual fund but want to stay away from savings accounts because of religious concerns, look into putting some cash into a good money market account---money market accounts are very secure, earn a low but steady return, and are halal.
4) Real estate---A lot of people would hate me for saying it, but I think unless you're experienced, real estate is an iffy proposition. Under the right circumstances it can be a good investment, but being a landlord is really a very big pain in the butt, and you need to ask yourself if you're willing to take on what is basically a part-time job in order to make the return. Later on, when your kiddies actually have decided on a college, buying a property near campus where they can live can be not a bad idea if you have more than one child there and/or are OK with renting any additional rooms to other college students, or if it's a property that you are thinking of eventually retiring to or moving into yourself. In most cases you'll want to hold a property for 5-10 years if you want to earn a decent return on the investment.
5) Your VERY BEST COLLEGE SAVINGS PLAN is to pay off ALL your debt as quickly as possible, pay down your house as quickly as possible, and fund your own retirement as best as you can. It's impossible to take on a huge expense like college when you're not on stable ground yourself. In a perfect world spouses will sit down before or shortly after marriage, establish a budget and work on a 10-year strategic plan for the family that involves paying off debt, putting down roots, and establishing financial stability before their oldest child hits middle school. I know, easier said than done. :)
Her buchchay kay naam say aik dubba bana lain aur her month aik amount set kar lain aur us main daltay jain ya account khol lain aur us main monthly deposit ka ammount set kar dain jo account to account chalay jain her maheenay.
Re: College Funds/Investments for children
My dad would say that he didn't any money to send us to college so we all better earn scholarships! he would say that whenever we weren't #1 in our class! lol. "agur pur ho gai nai to pehr college kasay joa gay, paisa kahsa aiy ga?!!' lol . So we studied harder, and got those scholarships, and had a free ride basically. So i think the best thing you can do for your child is make sure he/she works hard in school!!
Re: College Funds/Investments for children
I havent started anything yet (dont even have kids yet!) but inshallah Im going to start looking into my options soon so I can plan in the best way....but we want to do it totally interest-free inshallah, may Allah pur barakah in our wealth, ameen
Her buchchay kay naam say aik dubba bana lain aur her month aik amount set kar lain aur us main daltay jain ya account khol lain aur us main monthly deposit ka ammount set kar dain jo account to account chalay jain her maheenay.
Is this from Khwateen Digest?
Re: College Funds/Investments for children
Our plan is to let her fend for herself :D Kidding aside, we put some money in savings and investment accounts every month, even in this economy, investment is good, with dollar cost averaging, things eventually pick up.
More importantly, other than savings and investments, we give to charity. God mentions charity in the Quran more than Salat, that is the importance of charity. We feel that instead of 'hoarding' all our money now, if we give it to charity, He will take care of us and our little one when it's time, for us that is the greatest investment.
Our plan is to let her fend for herself :D Kidding aside, we put some money in savings and investment accounts every month, even in this economy, investment is good, with dollar cost averaging, things eventually pick up.
More importantly, other than savings and investments, we give to charity. God mentions charity in the Quran more than Salat, that is the importance of charity. We feel that instead of 'hoarding' all our money now, if we give it to charity, He will take care of us and our little one when it's time, for us that is the greatest investment.
Indeed. That is so true.
Re: College Funds/Investments for children
I think if you prepare your kids well in advance for good grades and earn scholarship - then it's the best option.
Me and my siblings took out loan and paid back in short period of time.
Hi all, No kids yet but I have an interest in investing; this is my two cents:
1) 529 plans are great. When I have children I will max out an Education IRA that I'll open through Amana Mutual Funds (an Islamic mutual fund company in America--they're terrific) and then contribute about the same amount to a 529. I will probably go with the Utah state 529 as they have the best selection of funds/lowest fees (you can open a 529 in any state, not just your own, and use the funds in any state). Utah offers Vanguard funds which I think are the best of the non-Islamic mutual fund offerings. * An Education IRA can be used to pay for private elementary, middle school, or high school as well as college! * A 529 can be transferred to any other relative student, so if the child doesn't use up the whole amount or decides not to go to school, the funds can be used for a sibling or even cousin, niece, nephew, etc.!
2) I personally would not do the Gerber plan. Very religious folks will probably want to stay away from life insurance altogether. I am personally not against life insurance but I believe that it is the parents, not the children, who need life insurance. The purpose of life insurance is to cover the lost earnings should the individual die. So for a working spouse, take out a policy that has a value equivalent to 7-10 years of their annual salary. For a non-working spouse/stay at home mom, I would look at perhaps a $150-250K policy--enough to cover some child care in the immediate term and college expenses later on. If you choose to insure your children, you really don't need any more than the $7-10K that it would require, if Allah forbid, they die and you need to pay for a funeral.
3) If you want to keep cash somewhere that's safer than a mutual fund but want to stay away from savings accounts because of religious concerns, look into putting some cash into a good money market account---money market accounts are very secure, earn a low but steady return, and are halal.
4) Real estate---A lot of people would hate me for saying it, but I think unless you're experienced, real estate is an iffy proposition. Under the right circumstances it can be a good investment, but being a landlord is really a very big pain in the butt, and you need to ask yourself if you're willing to take on what is basically a part-time job in order to make the return. Later on, when your kiddies actually have decided on a college, buying a property near campus where they can live can be not a bad idea if you have more than one child there and/or are OK with renting any additional rooms to other college students, or if it's a property that you are thinking of eventually retiring to or moving into yourself. In most cases you'll want to hold a property for 5-10 years if you want to earn a decent return on the investment.
5) Your VERY BEST COLLEGE SAVINGS PLAN is to pay off ALL your debt as quickly as possible, pay down your house as quickly as possible, and fund your own retirement as best as you can. It's impossible to take on a huge expense like college when you're not on stable ground yourself. In a perfect world spouses will sit down before or shortly after marriage, establish a budget and work on a 10-year strategic plan for the family that involves paying off debt, putting down roots, and establishing financial stability before their oldest child hits middle school. I know, easier said than done. :)
great advice!
My dad would say that he didn't any money to send us to college so we all better earn scholarships! he would say that whenever we weren't #1 in our class! lol. "agur pur ho gai nai to pehr college kasay joa gay, paisa kahsa aiy ga?!!' lol . So we studied harder, and got those scholarships, and had a free ride basically. So i think the best thing you can do for your child is make sure he/she works hard in school!!
Gulab Jamun - scholarships are great. I had one for colelge as well and paid the rest of my loans after I got a job.
But every child is different and scholarships might not be enough.
I know kids that have MBA and 100,000 in debt and no job. Economy is bad. So maybe a combination of everything is ideal - scholarships, savings, duas.