Fixed-income investment app Blossom has launched a facility aimed at enabling parents and grandparents to invest early on behalf of future family generations.
The new tool called Blossom for Kids gives adults the opportunity to open one of the service provider’s managed fund accounts for family members under the age of 18.
“Bonds have always played an important role in building and protecting wealth, but until now they’ve often been out of reach for everyday families. With Blossom for Kids, we’re removing barriers by offering access with minimum investments as low as $5, all through an intuitive digital platform,” Blossom co-founder Gaby Rosenberg explained.
“Parents can easily establish accounts and track progress alongside their children, turning financial literacy into a hands-on experience.
“Beyond financial returns, Blossom for Kids is also about instilling money confidence early. The experience teaches children the value of consistency, the rewards of patience and the importance of disciplined investing – key lessons that set the foundation for a lifetime of smart financial decisions.”
She pointed out bonds provide a more stable introduction to wealth creation for children when compared to other conventional asset classes.
To this end, the manager recognised fixed income as an asset class can provide a reliable and predictable source of income, making it a suitable type of investment to grow children’s savings.
The new service allows parents to easily open and manage their child’s account via the use of an app, which will in turn allow a seamless transition of control to the child when they turn 18. Further, it offers two investment options – Blossom Save aimed at generating a yearly return of 5.45 per cent and Blossom Plus targeting a 6.5 per cent annual return.
The manager suggested the appeal to younger generations is also likely to be strong due to the importance Blossom places on environmental, social and governance investing.
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