Is a portfolio is the new Glory Box?

I've heard of a Glory Box before. I wasn't fortunate enough to acquire one myself. But it would have been handy. My understanding of a Glory Box is that it is an accumulation of useful items, in preparation for moving out. Things like sheets, towels, cutlery and crockery, etc. This collection of items was put together by the parents and gifted to their child when they moved out of the family home. When I moved out of home at age 17, into a shared, partly furnished rental, I had $500 to my name and I managed to buy myself a double bed, sheets and a microwave. And I slowly collected and accumulated further items as I required them. I would have rather had saved my money to buy a car, but household items became my priority instead. There were many times I heard others discuss this concept of a Glory Box, and found myself in a daydream, wondering what it would have been like to have had, even just a small head start into adulthood.

Now I am a mother myself. And with the prospect of my children moving out just on the horizon, I have put much thought into how I can ensure that my children have a head start in their adult life. I'd be lying if I said I also wasn't motivated by the idea of having my home to myself again. I dream of less dishes, and washing and noise. But my children have grown up in a time where aesthetics are a priority. And the thought of me choosing what household items I would give them makes my kids shudder. Apparently my taste in EVERYTHING is just HORRIFIC! And they would die a slow death if they had to live in a home decked out in household items chosen by their Mother.

So how can I give my kids a head start if they don't want a Glory Box?

The answer to this issue is to just to put some savings aside, right? And to give that answer you wouldn't be wrong. But I know throughout the course of their childhood the value of that money would slowly erode. And by the time I gift that money to my children it would have lost some of its purchasing power due to inflation. Even in a high interest savings account, my children would not get the most bang for their buck. So what's the better option?

INVEST!

I opted to open an investment account for my children. It's just like a savings account but BETTER! Why? Because as I watch my children grow I also watch that money grow, not only because of the regular contributions that I make but also because of the money that is earned through the magic of compound interest. Using a compound interest calculator, I worked out that by the time my children move out (at approx age 18) for every $100 I contributed they would have earned roughly $80 on top of that. That's $80 I didn't have to work for. That's a HELL YES from me!

It's also important to mention that investing for your children is a great way to teach them about investing. I am currently facilitating Phase 1, by investing on their behalf and showing them how to do it, and thus setting them up for adult life. Once they have the skills to invest themselves then they can move on to phase 2 and set themselves up for retirement. The brokerage app I chose was Pearler Headstart. It is an easy to use platform with a great visual dashboard to help my children understand how the market ebbs and flows, and observe how it is still trending upwards when you zoom out on the chart. Showcasing the importance of holding your investments long term. You want to teach kids delayed gratification? Then there ain't no better way than teaching them to invest.

I am also teaching my children the concept of paying yourself first by encouraging them to put a percentage of their allowance each week into investing. It's doesn't always happen, but I don't believe in forcing them to do it. I believe the best lesson is the hard one. And so when one child has a bigger portfolio than the other it motivates them to catch up. The kids also add to their portfolio any money earned from recycling. Which I also think is another great lesson in teaching my kids about how to think outside the box to find ways to earn money with little effort and then maximise it.

So in essence, the Glory Box I have put together for each of my children is a collection of lessons and skills that will pay them in real and metaphorical dividends for the rest of their life. It consists of an investment portfolio, an entrepreneurial mindset, investing skills, self confidence, empowerment through knowledge.

And I think that is one hell of a Glory Box.