We all want to provide the best possible start to for our children and this usually involves some good financial planning. However, it also means protecting your family investments and savings from losses and unexpected costs. Even if you save and invest wisely, unexpected financial strain from the economy or form a loss of employment can quickly drain your money away.
Life Insurance
You should consider finding some good life insurance in order to protect your family from the loss of income if you, or your partner, pass away unexpectedly. For a relatively low cost you can make sure that your children are protected against any debts you might have such as a mortgage or any personal loans. While it is not nice to think of your death as anyone’s profit, you still need to think of your family’s survival.
Planning Your Own Funeral
You should also be planning you and your partner’s funeral well in advance and consider inquiring about funeral cover. A funeral can cost a small fortune, and if you have not saved or insured yourself then someone will still have to pay for the costs involved. Even funeral plots are becoming increasingly in demand and therefore more expensive as space in cemeteries is at a premium.
Long Term Investments
If you are saving to help your children out in the future then you should consider seeking the advice on a financial planner in regards to long term investments. Long term investments may see your wealth tied up, but the returns are generally much greater than short term investment. You can do this with shares or even government bonds for a more secure purchase.
However, keep in mind that no investment is 100% secure and there is always some risk involved. The more risk you are willing to take on your investment, though, the greater the returns are likely to be. Investing in risky financial products can also be a quick way to lose all of your money. If risky investments are not for you then you will want to look at slower growth but more stable investments.
Leaving Your Home
When you hit retirement age (or even before) you may find yourself with an empty nest when all of your children move out. This can be a great way to set your children up, as you can sell your larger home, buy a more manageable one, and use the money as a gift for your children and to fund your retirement.
Teaching Good Money Management
One of the most underrated ways to give your children financial security is teaching them good money management skills. If you kids have bad money skills then it won’t matter how much money you give them, they will still need more. So be prudent and save for your children’s future but be careful not to spoil them or make it too convenient for them to rely on your financial backing. The key to helping your children be financially prepared is starting to save, and teaching them to save, from an early age.
