How to financially provide for your children

From the moment your newborn locks eyes with you, the seed of responsibility towards your little one’s life begins to sprout and grow. Some parents have been known to reserve places in premium schools from the conception of their child. Talking of schools, it will dawn on many that education costs money and a better education costs even more.

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Most parents aim to nurture their children toward financial independence.

Starting early, putting aside funds in tax-free savings such as Junior ISA and Children’s Stakeholder Pension will definitely help. Independent financial advisor Marlborough based specialist Chilvester also recommend life and family insurances to cover any unforeseen circumstances.

However, the best advice actually starts with you. Once you have children, you need to realise that your lives as a couple have changed. No more impromptu holidays or expensive presents for the wife. You can no longer live above your means because like most lovebirds, you should start building your nest egg. The irony of it all is you still need to ensure your own financial survival so that in your old age, your children need not have the burden of supporting you!

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Location

Although it is true that establishing financial security depends on where you live, you must realise that the world is getting smaller and international thoroughfare for education has become a global scene. In the UK, the cost of tuition fees in any university is approximately £10000 per annum. It’s okay if you are Scots and live in Scotland because universities are free there, but what if you live in Wiltshire and your child with an IQ of 140 plans to be a doctor? Get help from experts like independent financial advisor Marlborough.

Instil, Invest and Insure

Buy a piggy bank and put your child’s name on it. Start early with lessons on the importance of saving for what they want (a new toy, a bicycle, or a mobile phone). The value of money is an important life skill. Invest in financial schemes to help ensure that at appropriate key stages in your children’s lives, cash can be easily accessed to help them proceed to the next stage, whether it’s an education fund or a pension fund. Finally, buy insurance – life, critical illness, and medical – because death is inevitable, but at least you’re insured.

 

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