We all want our children to grow up and do well in life, and sometimes it’s possible to give them a helping hand with this. For instance, you could help them with their education to make sure that they get a head start. Read to them as often as possible when they are young and encourage them to always do their homework to a good standard once they start to go to school. It’s also worth spending time working on their social skills so that they can grow up into well-rounded and confident individuals. For instance, you might want to sign them up for nursery from an early age or arrange lots of play dates with your friends and relatives who also have children of a similar age.
Of course, it will also pay off if you help your children with finances.
Start Saving For Them As Soon As They Are Born
One of the best things you can do to ensure that your children have a bright financial future is to start saving some money for them on a regular basis. You don’t have to save too much, but you might be surprised that even a very small amount could quickly add up for your kids. If you just save £10 for them every month from their birth to their eighteenth birthday, then you will be able to save £2160 for them. If you place these savings into a high-interest savings account, then they will also get quite a bit of interest paid onto them over the years, which should help the pot of cash grow even more. You will be allowed to open a bank account for a child as soon as they are born, and it really is something you should think about.
Take Out Some Life Insurance
It’s also a really good idea to take out some life insurance for yourself and your partner. This will help to protect both of your incomes should anything happen to you. For instance, if one of you were to suddenly pass away, then the life insurance will then pay out every month to replace all or part of the monthly income that was being brought into the family. This way, your family wouldn’t also have to deal with any money issues while they were grieving and dealing with the loss.
Write Your Will
haven’t already, you should also think about making a will. It may not be the most pleasant thing to think about, but it will be super beneficial for your family. In the will, you will state how you want your money and estate divided up between your loved ones in the event of your death. For instance, you can say that you want your money split up equally between your partner and your children. You can also state who will inherit any property that you own. The will will make it a lot easier for everyone once you do pass away. They won’t be able to argue the terms of the will, so there won’t be any debate regarding who gets what. Not only that, though, but it also ensures that your children get what you want them to, as no one will be able to state any claim to what they are due to inherit.
Think About The Potential Cost Of University
There’s a chance that your kids might want to go university to get a good education in order to further their careers. This is a really good path for them to take, however it can be really expensive. The cost of university has been gradually increasing for the past decade or so, and there is no sign that it will be reduced anytime soon. So, this is going to be an expense that you will need to prepare for. If you can afford to, it’s worth saving up for it as soon your kids are born. You could start a separate savings account for your child alongside one for general savings. This could be a good idea even if your kids decide to not go to university after all – at least they will still have these savings that they could put towards a house deposit or their first car.
Talk To Your Children About Money From An Early Age
As well as making all of these financial preparations for your children, it’s also a good idea to be open with your discussions about money. You should explain why it is so important to save as much money as possible. It’s also necessary to teach them the concept of interest so that they know to always look for the bank accounts that will offer them the best interest rates. Make sure that you talk to your children about various financial products as well, such as loans, credit cards, and investment opportunities.
Avoid Loans And Credit Cards
You should talk to your children about loans and credit cards so that they are aware of them, but it’s best to try to discourage them from using them once they become financially independent. If they do start to use these kinds of products, they will be a lot more likely to end up accidentally sliding into debt and with huge bills to pay. So, make sure that your kids are aware of the fact that there are some financial products that they need to be wary of.
Give Them A Piggy Bank
Piggy banks may seem quite old fashioned these days, but they are a great resource when you need to teach your kids about the basics of money. They will be able to save up any change that they are given. Eventually, if they leave it for long enough, they will have a nice little pot of money to use however they want. By doing this, it’s a great way to show them just how useful saving money can be.
As you can see, teaching your kids about the basics of good money management can be incredibly easy. This should help secure their financial futures!