Preparing Your Children Financially If Something Happens To You
It’s inevitable, but it’s never nice thinking about it, what would happen to your children if something happened to you tomorrow? Would they be looked after, or would they be thrown into turmoil? If you are a single parent, this is very likely a big concern for you, as they rely on you for everything, especially the financial aspect. And we make big purchases in our lives, such as buying your first home or planning for a wedding, so what can we get to make sure our children are looked after should the unthinkable happen?
As far as an investment is concerned, some people are still skeptical of paying into something that may or may not pay out. And life insurance is one of those things where every policy has its own fine print, so you need to find the most suitable policy for your circumstances but also for your budget. There are life insurance quotes comparison websites where you can find the best policies for your own situation, and the more comprehensive the policy, the more expensive it is. Needless to say, you need to weigh up the options.
High-Interest Bank Account
By opening an account that is in your child’s name means that the money is theirs and you can keep adding paying in cash as you go. For those that have concerns about their children and whether they would spend it right away, there are ISAs that can’t be opened for a designated amount of time, or can be opened, but for a fee. And it’s your choice, but as a straightforward way to have money in the name of your child, it’s a pretty simple way to go.
Look For A Nest Egg
Whether it’s a house or an antique painting, something of value in this respect can be the thing to keep your loved ones out of debt if something were to happen to you. Of course, you need to make sure that the estate plan and the will clearly stipulate that your children would get the home in the result of your death, but if they are under a certain age, it’s best to put it in a guardian’s name.
For young children, this can be very useful because the investments are tax-free, depending on the amount you have to pay in. The stocks are managed by the child from the age of 16, meaning that you have to take the reins up to then, but due to it being tax-free, it is a great way to amass a large sum of money quite quickly.
A Junior Pension
Children can have pensions too, and self-invested personal pensions can be available from birth, and the government can “top up” the funds in the form of tax relief, so as time goes on and the money increases, there can be quite a money pot available in the future. Looking after your children in whatever way you are able to financially can also mean giving them the knowledge to build some money for themselves, and not just the money you can squirrel away.