As parents we find ourselves constantly worrying about our children. Did they brush their teeth? Are they eating their five-a-day? Are they getting enough exercise?
It’s not just these daily things we find ourselves worrying about but also the bigger stuff. Will they go to university? How will they be able to buy a house? What will their future be like when grazed knees and monsters under the bed are no longer their biggest worries?
While financial security can bring peace of mind many parents aren’t in the position to cover university fees or pay for house deposits. However, there are a few things we can all do to future proof our children’s tomorrow:
First thing is first. Sit down and work out exactly how you would like to help your child in the future. Do you want to buy them their first car, help them with their first house deposit or cover their uni fees? Do you want to give them a cash gift on their 21st birthday, or to help with their wedding day?
Create a plan:
Nothing is ever achieved without a plan. Depending on your own circumstances you may include some or all of the following. List the ones that apply, giving you a clearer idea of what needs to be done and how you’ll do it.
Get your own affairs in order:
If you still have debts you need to tackle them first. Work out a plan to pay them down and don’t take on any new debt.
If you have debts that you’re trying to clear, begin by starting a small emergency fund that you can turn to when the going gets tough. There is a wide range of savings accounts with Santander that enable you to begin saving with a small amount each month. Start slowly and build the figure up as your financial position becomes stronger, investing more of your money for both short and long-term plans for you as well as your children.
Plan for when things don’t go to plan:
None of us like to think of our own mortality but the truth is that bad things happen. As parents we need to ensure that our children will be taken care of in the event of us not being there. Taking out life assurance will ensure that finances are something that they won’t have to worry about.
And don’t forget your will:
Just another grown-up thing that we don’t like to think of but really should do – especially if we have kids.
Teach them well:
Last but not least, if you do nothing else for your children make sure you teach them about money. Teach them to budget, how debt works, how investing pays off and the effects of compound interest. Ensuring they are money savvy from a young age will go a long way in preparing them to make informed, educated financial choices as they get older.
Have you taken steps to future proof your child’s tomorrow? What tips would you add?