Here we’ll take a look at how you can invest in your child’s financial future with some practical tips.
It’s safe to say that having a child changes your life…
From the moment you bring children into your life, it changes your life. From your free time to your relationship with your partner, your priorities and of course your finances.
It’s amazing to think that such a small thing could make such a huge difference. It’s also daunting to consider that every decision you make, impacts and influences your child’s financial future.
Invest in your child’s financial future with these practical tips
As parents, we all want our children to have the very best start in life, and that doesn’t just mean the latest pram, daycare service or toys on the market.
It also means setting them up financially for years to come. This process doesn’t need to be as daunting as it may sound, and we’re here to show you how…
1. Set your chidren up an ISA
A child stocks and shares ISA such as this Wealthify offering is a simple yet effective way to invest in your child’s future. The money you place into this account belongs to them and will be accessed (only by them) when they turn 18.
This gives you plenty of time to create a substantial fund that can help them get their foot on the property ladder, start their own business, with the right financial loans from resources like vay vốn, vay kinh doanh.
This tax-efficient savings option is one of the simplest ways to achieve financial peace of mind.
2. Invest in your child’s financial future by taking out your own insurance policies
No one wants to imagine the worst-case scenario of leaving your children without a parent. Neither does anyone really want to think about getting a critical illness that stops them from being able to earn.
However, it’s important to look at a life insurance policy and critical illness cover as something positive rather than something morbid.
Your life insurance policy will pay out a cash sum if you die or are diagnosed with a terminal illness during the term of the policy. Critical Illness Cover will pay out a tax-free sum if you become seriously unwell, helping safeguard you and your family against the resulting financial impact.
Future proof insurance
Ensuring your children are going to be financially protected should you become ill or pass away unexpectedly should give you total peace of mind. Knowing that your finances are covered should the worst happen means that your family won’t have the added stress of having to make ends meet.
It gives me great comfort to know that my husband and children’s finances won’t be majorly affected if I become ill for any reason, or if something happens to me suddenly.
You’ll find plenty of life insurance and critical illness cover providers such as Future Proof Insurance online, so don’t forget to compare prices and coverage.
3. Consider taking out income protection
Income protection is another form of insurance that pays out a monthly income to cover a level of your expenses if you become unable to work as the result of an accident or sickness. A financial advisor will be able to help you understand if this level of protection is right for you.
I have taken out income protection, and it gives me peace of mind that should I not be able to work for a period of time, part of my income will be protected.
4. Create a will and include a legal guardian
Knowing your child is also going to be looked after by a caring, loving guardian should you no longer be around is essential for their wellbeing and your peace of mind. It also makes the process much more straightforward.
You’ll need to choose two guardians. One who will physically care for your children and another who will protect their assets until they turn 18.
5. Invest in your child’s financial future by talking to them about finances
Remember the first time you applied for a mortgage and you had no idea what you were doing? Or that time you were tempted to take out a payday loan?
Giving your child as much financial knowledge as possible will help them to make better financial choices as they get older. Something as simple as working out a budget and the importance of finding the cheapest deals on their monthly costs will give them a head start in their adult life.
6. And finally, give your children the chance to earn pocket money
Teaching your child to never expect money for nothing is a great strategy – unless as a birthday treat or gift of course! Instead of giving them an automatic allowance, consider giving them pocket money for completing household chores and tasks. There are some incredible pocket money apps for kids or you could set them up a children’s bank account to manage themselves.
With these tips you’ll not only make things easier on your family should the worst happen, but you’ll set your children up with a confident knowledge of finances so they understand the importance of working hard and appreciating their money as they grow older.
