What do parents need to think about when it comes to Financial Planning? Here are some financial considerations every parent should address:
Protection
Protecting your family with the right insurances should be your first priority. Providing financial security for your loved ones in the event of your death, or if you are unable to work due to a critical illness, will help to mitigate the financial impact of unforeseen circumstances.
Wills
Often forgotten about, having an updated Will is vital to ensure you legally appoint guardians for your children, and to specify how your assets should be distributed in the event of your death. Without a will, decisions regarding your estate may be left to the courts, potentially causing delays and disputes among family members.
Budgeting
The costs of having children quickly adds up! From childcare costs, after school clubs, plus daily expenses such as nappies, medicines and clothing. Establishing a budget that accounts for all expenses is essential for good financial wellbeing.
Children's Savings
Assuming parents have saved for an emergency fund, and any relevant sinking funds, then savings for your children should be next. With the cost of living, every pound you save will help their future. Consider opening dedicated savings accounts, and setting up direct debits to help stick to saving goals.
Children's Pensions
Assuming parents have met all of the previous Financial Planning tips, they should also prioritise their own retirement plans and pensions, but a child will also benefit from the power of compound interest and a pension can create a robust nest egg for their future.
If we can help with any of the matters mentioned in this article, please get in touch to book your appointment. We offer virtual appointments as well as in person meetings at our offices in Polegate, East Sussex.
The value of pensions and investments and the income they produce can fall as well as
rise. You may get back less than you invested.
Will writing is not part of the Quilter Financial Planning offering and is offered in our own right. Quilter Financial Planning accept no responsibility for this aspect of our business.
Will Writing and Advice on Cash in Deposits is not regulated by the Financial Conduct Authority.
Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 11.03.2024.
