Do you believe that the children are the future? I’m sure most people would agree that they are! After all, they are the ones who are going to inherit the earth once we have passed on. What’s more, your children are all set to inherit your family’s finances. Are you sure that it looks like they will be inheriting as much as possible? One way to ensure that happens is to fix your children’s financial future.
These days, what with the failing economy and various turmoils in all aspects of life from politics right through to business, it is now harder than ever for an individual to make his or her own fortune. Most people who have some form of wealth right now have been handed it on a plate by their better-off parents. This trend looks set to continue for the next few generations. As a result, more parents are wising up to the fact that they need to be smart with their finances so that their children can enjoy the benefits. Not only do you need to start saving money for yourself and family to enjoy in the near future, it is now important to set some money to one side that your children can use in the distant future. That’s not all you can do to fix their financial future. Here are a few other actions that you need to take.
Raise Them To Be Smart With Money
Firstly, it’s a really good idea to raise your kids to be smart with their own money. That way, they will be a lot more likely to make all the right decisions when it comes to managing their own cash once they head or to college or start earning a salary. There are different ways to teach children good money management skills, and their current age will largely influence this. For instance, if your children are still younger than six years of age, it’s best to play some games with them that incorporate toy money. For instance, you might want to play shops with them. Once they get older, you can start to offer them weekly pocket money. It’s best to encourage them to save their money, especially if they have their eye on something special. They will then learn all about the benefits of delayed gratification.
Start Saving For College Education
There is no getting away from the fact that college education is exceptionally expensive these days. Most children would be unable to afford further studying after high school were it not for the help they receive from their parents. So, no matter how old your children are, if you haven’t already started to save for their college education, it’s a good idea to do so now. Even if they are still just a baby or a toddler! Even though you might not know whether your children will actually end up going to college just yet, it is certainly best to plan now so that you are prepared. If they decide not to pursue a college education, then all the cash you have saved up for them could go towards a deposit on their very first property.
Open A Trust Fund
College isn’t the only thing that you should save up for when it comes to your children. Most parents are also interested in starting a trust fund these days. Once, trust funds were something that the wealthiest families created for their children, but now more and more families are setting them up so that their kids will be financially secure in their adult lives. You will need to pay some savings into the fund on a regular basis. Once your child comes of age, they will be given the money that has been saved up. They can then use this how they want – for instance, they might want to put it towards their college life, use it for a property deposit, or buy their very first car with it!
#Summer is for family time! #Trustfunds can be used for a number of reasons; protecting family #assets, passing assets on whilst you’re still alive & leaving inheritance to minors.#AbacusWillsAndTrusts pic.twitter.com/3fXOQP9dad
— Abacus Wills & Trust (@AbacusWillTrust) July 12, 2018
Take Out Life Insurance
You never know the troubles that life may throw at us in the future. So, it’s always best to be as prepared as you possibly can. One way you can prepare your finances and make sure that your family will be protected in the event that anything were to happen to you is to take out some life insurance. In the event of your untimely death, this insurance would replace your part of the family’s income, and your partner will continue to receive a portion of or your full salary each month. That way, your family won’t be hit too hard, financially speaking, by your loss.
Write Your Last Will And Testament
If you haven’t already written your last will and testament, then you should speak to the likes of Brown Smith Wallace so that you can start to plan your estate and how you want it split in your inheritance. It is crucial that you do write a will in the first place. Otherwise, it could make things difficult for your close family when you do die. If you are married to your partner, then your estate will automatically go to them without a will. However, if you are not married,they won’t have a legal claim to it. So, if you do want your estate to be equally split between your partner and children, you need to ensure that this is all detailed in your last will and testament.
Be Smart With Your Savings
When you are saving your money, you should be smart when considering where you place them. Just depositing some cash into a standard bank account isn’t usually good enough as you won’t benefit from high interest rates. At the very least, save your money in high-interest rate accounts so that the value of the cash will grow by all the extra interest. That will increase the amount of cash your children can benefit from later in life.
There’s plenty you can do to help improve your children’s future financial forecast!