Securing the Future for Your Children
Filed under:
Family
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Thinking about the future can be a scary prospect, especially with the financial hardships and growing dangers which are present in today’s world. There is only so much that parents can do for their children to ensure a secure and safe life for their futures. However, taking certain precautionary steps can give you peace of mind to prepare your family for what the future holds. Building a strong financial foundation for your kids will not happen overnight, but can be established over time, with patience and careful planning.
An indepe ndent financial advisor has advised…
"While planning for a good financial future for your child, you have to consider two things: One is how to create the funds by way of smart investing for their present and future financial needs. And second, creating a very strong risk protection plan to take care of any unfortunate event which may happen in your life"
Some issues to consider…
Appoint a Guardian
As morbid as it sounds, you must always prepare for the worst. In the unlikely event that you cannot take care of your child, it is always best to have a trustworthy replacement ready. Of course this will be no easy or pleasant task. Choosing a person to essentially replace you in your child’s life can seem impossible -but it is always best to be safe rather than sorry. Your choice of guardian must be willing and aware of your choice, as the decision will be legally binding. Factors to consider are: their moral beliefs, their available time to raise a child, and where the guardian lives. In the unlikely case of your guardian having to step in, you will want the transition to be as easy for your child as possible, as the chances are they will already be dealing with quite an ordeal.
Making a Will
Making a Will is one of the most important decisions that a person can make, especially if you are a parent. Ensuring that all of your assets go where you want them to is vital to your child’s financial future. Having said this, only around one in three of us actually do write a will. Gordon Dean, solicit ors in Norwich advise that due to changes in property prices, Inheritance Tax laws and the ever changing nature of personal relationships mean that making a Will (or reviewing an existing Will) has never been so important. So stop putting it off. Sort your will out when you next have a free weekend.
Create a Trust Fund
According to a recent study, the cost of raising a child to the age of 21 is now more than £220,000, 58% higher than a decade ago. This can be a daunting figure of money to digest, and makes considering putting future funds away an improbable task. Putting any sort of money away for your child could be so beneficial for them though. An investment trust could be a great option. Data from the Association of Investment Companies shows that, if you had pay £50 monthly into the average investment trust for a period of 18 years, it could be worth almost £17,500. And remember, that's average performance – if you choose your investment shrewdly, you could do a whole lot better.
University Fund Plan
With university fees on the rise, as well as the general price of living, it can be difficult to think about setting up a fund or even planning to set up a fund. The here and now seems like the most important thing to focus on. There are ways to combat this struggle though. Start saving a little, and early is the answer. By saving even £30 or £50 a month from when your child is born can accumulate a decent sum of money for their future.
Monitor Your Own Financial Discipline
Your own financial discipline is an invaluable lesson you can provide your children with. It’s your chance to show them how money should be handled. Making sure that you prepare them with the right values about money, the ability to control impulsive shopping as well as the right view of the importance of money relative to other necessities in life can be significant to how they handle money when they have their own. Although many of these values may vary in their impact on your kids’ future capabilities, the bottom line is, the more understanding children get of how money should be handled properly, the better they will be prepared to tackle their future financially.
An indepe ndent financial advisor has advised…
"While planning for a good financial future for your child, you have to consider two things: One is how to create the funds by way of smart investing for their present and future financial needs. And second, creating a very strong risk protection plan to take care of any unfortunate event which may happen in your life"
Some issues to consider…
Appoint a Guardian
As morbid as it sounds, you must always prepare for the worst. In the unlikely event that you cannot take care of your child, it is always best to have a trustworthy replacement ready. Of course this will be no easy or pleasant task. Choosing a person to essentially replace you in your child’s life can seem impossible -but it is always best to be safe rather than sorry. Your choice of guardian must be willing and aware of your choice, as the decision will be legally binding. Factors to consider are: their moral beliefs, their available time to raise a child, and where the guardian lives. In the unlikely case of your guardian having to step in, you will want the transition to be as easy for your child as possible, as the chances are they will already be dealing with quite an ordeal.
Making a Will
Making a Will is one of the most important decisions that a person can make, especially if you are a parent. Ensuring that all of your assets go where you want them to is vital to your child’s financial future. Having said this, only around one in three of us actually do write a will. Gordon Dean, solicit ors in Norwich advise that due to changes in property prices, Inheritance Tax laws and the ever changing nature of personal relationships mean that making a Will (or reviewing an existing Will) has never been so important. So stop putting it off. Sort your will out when you next have a free weekend.
Create a Trust Fund
According to a recent study, the cost of raising a child to the age of 21 is now more than £220,000, 58% higher than a decade ago. This can be a daunting figure of money to digest, and makes considering putting future funds away an improbable task. Putting any sort of money away for your child could be so beneficial for them though. An investment trust could be a great option. Data from the Association of Investment Companies shows that, if you had pay £50 monthly into the average investment trust for a period of 18 years, it could be worth almost £17,500. And remember, that's average performance – if you choose your investment shrewdly, you could do a whole lot better.
University Fund Plan
With university fees on the rise, as well as the general price of living, it can be difficult to think about setting up a fund or even planning to set up a fund. The here and now seems like the most important thing to focus on. There are ways to combat this struggle though. Start saving a little, and early is the answer. By saving even £30 or £50 a month from when your child is born can accumulate a decent sum of money for their future.
Monitor Your Own Financial Discipline
Your own financial discipline is an invaluable lesson you can provide your children with. It’s your chance to show them how money should be handled. Making sure that you prepare them with the right values about money, the ability to control impulsive shopping as well as the right view of the importance of money relative to other necessities in life can be significant to how they handle money when they have their own. Although many of these values may vary in their impact on your kids’ future capabilities, the bottom line is, the more understanding children get of how money should be handled properly, the better they will be prepared to tackle their future financially.
