We all want what’s best for our children and it starts before they’re even born. We want them to have the best buggy, the best toys, the best clothes, a warm home and a supportive family network. If you’re a parent, you’ll understand that this feeling never goes away and even as they grow, we want them to step into their adult lives, well informed and ready to take on anything that life may throw at them.
We can help them understand relationships and support them with their careers, but have you given much thought to their financial security? Planning for your child’s future is more than just where they’re going to live and the relationships they may venture into, it’s about providing them with a financial safety net, so if anything should happen to you, you know that they’re financially secure and protected.
Want to sleep better at night? Check out these simple tips that will help you create financial security for your kids.
Consider a Junior ISA
Investing in your child’s future has never been easier with ethical junior ISAs at Wealthify. These simple, and easy to manage accounts give parents like you full control of your child’s savings until they turn 18. Giving you plenty of time to deposit as much as you think is necessary – you can save up to £9,000 a year for each child. It’s a tax-efficient way to ensure your child gets a helping hand when they hit adulthood. Whether they want to travel the world, get married, buy their first home or car, you’ll be able to give them financial stability, which is an incredibly selfless gift.
Talk to your kids about money
When it comes to money, we all tend to learn the hard way about interest rates, loans and credit cards. But your children don’t have to. Basic financial information isn’t taught in schools, so there’s never been a better time to step up and fill in these worrying gaps in their education.
Talking to your child about the importance of living within your means, budgeting well, saving money and avoiding things like payday and logbook loans will give them the information they need to make better financial choices. Your kids will look to you for advice, so make sure you’re setting a good example in terms of your own spending habits!
Update your will or create one
No one likes to imagine the worst-case scenario. But, death is something that comes to us all and in terms of financial security for your children, the more prepared you are for the inevitable, the better. Drafting a will means protecting your child’s future, whether you’re including property, assets or even a lump sum, drafting a will is incredibly important but thankfully, simple. You may also need to appoint a guardian if they’re below 18 at the time of your death.
Final thoughts…
If you have children, knowing that they’re financially stable in the event of your death or as they step into their adult lives will give you complete peace of mind. And there’s no better time to start preparing for their future.