As a parent you want your child to have the very best start in life. We work hard and sacrifice so much to ensure they have the things they need, spend every waking moment thinking of them, and we love them unconditionally. But as they grow into responsible adults and embark on their own lives, although we’re proud and happy for them, it’s difficult to take a step back!
When you take steps to protect your child’s financial future, you’re not only setting them up with a potentially life-affirming amount of money, but you’re also giving them the financial knowledge they need to make better monetary choices and to reach their financial goals. Here we’ll take a look at how you can protect your child’s financial future with these simple steps.
Open a Junior ISA
Your child might already have a savings account in their name, however opening a Junior ISA for them doesn’t just provide them with another monetary fund, it gives them the opportunity to reach their financial goals. With a Junior ISA, you can save up to £9000 a year for each of your children, and any money you place in the ISA works for you allowing it to grow in a tax-efficient way – click here to find out more about Junior ISAs. The money in the ISA account belongs to your child, and they’ll have access to it when they turn 18, giving you plenty of time to build on their savings and secure their financial future.
Give them an allowance
Giving your children pocket money is something that brings up many differences of opinion. However, if you want to show your children the value of money and help them to secure their financial future, then helping them understand the importance of money is a step in the right direction. One approach is to pay your child an allowance for any chores they have completed, this shows them that money isn’t simply given to people for no reason, they have to work hard to earn it.
Talking to your primary school-aged child about mortgages and interest rates doesn’t exactly scream excitement. However, talking about money and bringing it up in everyday situations can help broaden their understanding. Whether you’re chatting about how you’re paying for your family car with a PIP scheme, or you’re discussing your budget so you can save money to go on holiday, bring your children into the discussion and even value their input on how you can save money or find cheap activities to do.
Have a life insurance policy in place
No one likes to think about the worst-case scenario but having a life insurance policy in place could secure the future you always wanted your child/ren to have. There are plenty of policies out there to suit your requirements, so no matter what happens, you know your children are financially protected.
Preparing your child for adulthood isn’t only talking about relationships, education and their career, it’s about giving them the tools they need to have the very best start to their adult lives. Follow the steps above to get started.