Why Lifestyle Financial Planning is crucial to providing a future for your children
02 October 18  /  Insights

Whilst having children is a wonderful, exciting life experience, it bares lots of responsibility, including being financially stable to ensure their future is bright. 

Lifestyle Financial Planning is important in helping you to financially prepare.

It is important to start financially planning for your children as early as possible. This allows ample time to accumulate enough money and to help you be in a strong financial position.

Early planning can offer financial stability during the most crucial years of you children’s lives, helping you to prepare for the long-term and consider all important aspects of their lives, such as education, their wedding, buying their first home and so forth.  

There are a few ways to ensure you are financially secure to provide a future for your

1. Savings / Investments

Saving for your children can provide a solid financial foundation and there are plenty of options to consider.

Bank accounts
You can set up a bank account on your child’s behalf which they can manage themselves (with your assistance) from the age of 7. You can either set up an instant access account or a regular savings account.

Junior ISAs
An investment account that allows up to £4,260 (as of 2018/19 tax year) of tax-free cash to be saved per year and can only accessed once your child turns 18. They are able to convert this to an Adult ISA and you can hold both Cash or Stocks and Shares type investments.

Premium bonds
This allows you to buy ‘tickets’ on behalf of your child up to £50,000 in total and each one is entry to a monthly prize draw, where winners receive between £25 and £1 million of tax-free cash.

Child pensions
It is possible to set up a pension for your child which can only be accessed once they reach 55 years old.

Your Lifestyle Financial Planner will discuss your options with you depending on which type of account will be of the most benefit to you and your circumstances.  

Find out more about investing tax-efficiently here.

2. Inheritance Planning and wills

Another way to ensure your children are financially secure, even when you are not here, is to provide them with an inheritance in your will by leaving assets to them directly or through a Trust. Your Lifestyle Financial Planner can assist in working with other Professionals to ensure your Will meets your needs.

3. Life Assurance

Life Assurance is designed to provide a lump sum or regular income upon death and can provide you with the security of knowing your family will be able to manage financially without you. Typically this might be used to repay a mortgage or give your family capital to replace income.

Working with us as your Lifestyle Financial Planner can ensure we have looked at the catastrophes which happen in life and ensure you are prepared for them as best you can be.

4. School and university fees  

It is important to understand the true cost of sending your children to private school and university. We can work this into your Lifestyle Financial Plan, ensuring you are financially prepared for the cost of your childrens’ education and how best to fund it.

It is never too late to start planning for your child’s future, whether they are newborn or a teenager. If you are concerned about having enough money to support your family, talk to us today on 01865 208012 or click here to send an email.

Find out more how we helped a couple gift to their children, whilst still having enough to support themselves in retirement.