AD | I really want Leo to have a great start to his life. I am a bit worried about his future, financially speaking. My biggest worry is that he will struggle to get on the property ladder. I spent my 20’s renting as I could never afford the deposit to a house. Then you get stuck in a cycle where you are spending so much on renting that you can’t ever save up! With house prices rising, who knows how much money you will need to save to get a 10% deposit for a house in 20 years!
I would love Leo to have some money towards a deposit on a home when he’s older. Although, I would like him to live with me for the rest of his life! That’s fine, too. But I’m sure someday he will want to flock the nest.
I also want Leo to be secure if anything ever happened to me or his dad. Of course, I hope we will both live well into old age. We are both well adults so there’s no reason that we shouldn’t, but it’s not a risk worth taking. My baby boy will be looked after if anything terrible does happen, both by our loving family and financially.
Here are some ways that we are investing in Leo’s financial future and how you can invest in your child’s, too!
Invest in some premium bonds
Leo’s grandad opened a premium bonds account for him when he was born. I manage that account now and we put some money in for him each month.
This was a better option than putting it into his savings account as with premium bonds, you get entered into a prize draw each month and can win lots of prizes, the top prize being a million pounds! Although winning is not guaranteed each month, most people end up earning more in prizes than in interest.
The prizes are then reinvested back into his bond account. He’ll have access to this when he’s an adult.
Although it is his money and he can decide what to do with it, I really hope he will be smart with it and use it towards something like a house deposit!
Update your will
It’s important to update your will when you have a big life event to ensure your home and assets are going to who you wish. When you have children, having a will is important as you can nominate who you wish to care for your children if something happens to you.
Get life insurance
Life insurance will ensure your child is looked after if something happens to you. For a small monthly fee you can ensure your home is paid off or your child gets a lump sum of money. There are different types of life insurance you can get to make sure your dependents are taken care of.
So make sure you look into each option and pick the one you feel is the best. Some workplaces also offer a payout to a nominated person if you die, so ensure this has been changed to the right person!
Teach them about money
Teaching your child about money is a great way to show them the value of a pound. Here are some things you can do to show your kids how to be good with money:
- role play such as pretend shops/supermarkets to show them the concept of money
- teach them to save money by getting a piggy bank/money box
- create opporunities for them to earn money with house chores
- teach them about price comparisons
- model good money behavoir around them
- give them pocket money that they can manage
- encourage them to save up for something they really want
- teach them about debt and interest
Obviously, these things will depend on the age of your child but have open conversations with your child about money and financial security.
Get a prepaid funeral plan
I know we don’t like to think about it, but we could die any day. We like to think we are invincible and that the end of our lives is far away, but there’s always a chance it could happen sooner than we expect.
You can help your family and children out by taking out a pre-paid funeral plan with Heath of England Funeral care. This can help you reduce the financial and emotional burden on your family by paying towards your own funeral and having your personal choices recorded.
If you have kids or either dependant, I’d love to know what you are doing for their financial future?
If you want more money and finance tips, please check out my money blog!