If you’re a parent, chances are you spend a lot of time thinking about your child’s future. As with many things in life, this often revolves around money, and your family’s financial future is likely to be a big consideration. If you’re in the process of planning a secure financial future for you and your family, take a look at these tips.
Be savvy with savings
Saving money is so important to meet certain financial goals. If you have a goal of cash you want to keep aside for the future, then it’s time to get serious with your savings. For instance, you could be planning to save money to help your child through college or university or have a goal in mind to buy a second family home in the future. Think about what you can do to boost your savings, whether this means setting up a direct debit into your savings account or following stricter budgeting rules.
One idea could be to try out the 50/30/20 method for budgeting. This method requires you to put aside fifty per cent of your monthly income for ‘needs’, thirty per cent for ‘wants’, and twenty per cent then goes into your savings. Following a strategy like this each month is likely to help you generate an attractive savings account more quickly and help you meet these goals.
Open a junior ISA
A Junior ISA account allows you to put money aside which your child can access once they turn 18. This could be a good option for you if you want to reward your child with some inheritance once they reach adulthood, which can be used to help them buy their first home or go towards their own savings. The maximum you can put into a Junior ISA for the 2018/2019 tax year is £4,260.
Teach your kids about money
Teaching your children about money early on is a good way to make sure they have a clear head when it comes to finances. Make sure your children know about the basics of money management, and the importance of saving and budgeting.
Carry out activities with your child such as giving them a small allowance of money to spend, and encouraging your child to save spare change such as keeping pennies in a jar. Activities like these will make them more familiar with money and how much things cost, equipping them with some essential skills for the future.
Investing is one of the best ways to truly boost your income. There is a range of investment types out there, but property proves to be the most lucrative and beneficial when it comes to planning your financial future. Not only does property investment give you the chance to make attractive monthly rental returns, but it also gives you an asset that can be passed on to your family members later in life.
To make a solid property purchase, look for a property investment company that offers opportunities in the best buy to let locations. RW Invest is a reliable company to go for, with investment opportunities in property hotspots like Liverpool and Manchester. These areas not only offer some of the best rental yields, but they also have a high likelihood of strong capital appreciation, which improves the chances of a large return on investment later in life.
Write your will
While it might not be something you like to think about, writing a will is crucial if you want to ensure your children are financially secure if anything happened to you. Find a trusted and reputable lawyer to help guide you through this process and help give you some peace of mind.