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 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. Here’s how…
1. Set Them Up An ISA
A child stocks and shares ISA 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, create their own business, buy a car or even take a gap year.
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 Life Insurance Policy
No one wants to imagine the worst-case scenario of leaving your children without a parent.
However, it’s important to look at a life insurance policy as something positive rather than something morbid.
Ensuring your children are going to be financially protected should you become ill or pass away unexpectedly should give you total peace of mind.
You’ll find plenty of life insurance providers online, so don’t forget to compare prices and coverage!
3. 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.
4. 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.
5. And Finally, Give Them Commissions
Your child should never expect money for nothing – unless as a birthday treat or gift of course!
Instead of giving them an allowance, consider giving them commissions for completing household chores and tasks.
They’ll soon understand the importance of working hard and appreciating their money more!
