The School Bells Have Rung; The Costs Have Begun
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The School Bells Have Rung; The Costs Have Begun
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The School Bells Have Rung; The Costs Have Begun
Transcript of The School Bells Have Rung; The Costs Have Begun
The School Bells Have Rung; The Costs Have Begun
The school bells have rung to mark the start of the new term for schools, colleges and universities across the UK as hundreds of thousands of students return to their classrooms.
September marks the start of a new academic year and for those with children, it is the annual reminder of the fast approaching financial pressures which lie ahead.
Whether it is the cost of private school or university fees, music lessons, school trips or driving lessons, having children can add layers of financial strain to any marriage or partnership.
Simple financial planning measures can help to avoid the trigger points of financial strain in the future, allowing parents to enjoy the milestones in their children’s lives, rather than them becoming trigger points for worry.
Financial planning for your child’s future
1. Identify the costs. Set a realistic figure for or school university fees and estimate projects costs such as learning to drive. Mapping out the significant spends for a child can be straightforward and will provide you with saving deadlines and sums to achieve.
2. Don’t rule out investing rather than saving. If you have a new baby and want to save for university costs, then you should consider stocks and shares NISAs, rather than cash ones. Stock-market linked investments are best considered when the money is not needed for at least five years. This is because the returns are typically higher than paid on a cash accounts, and there is time for any rises or falls in the stock-market to even out and hopefully provide greater returns.
3. Talk to grandparents and great grandparents about your financial plans for your child.
If you start saving goals specifically and early, then relatives have the opportunity to contribute. They may prefer to make a donation to a university fund, rather than buying expensive gifts for birthdays and Christmas.
4. Don’t save for your child in isolation to your other finances. Financial planning is about mapping out your income now, so it works better for you in the future. Your child’s future costs should form part of these plans, but not compromise other essential costs, such as life insurance or contributing into your own pension.
5. Speak to a wealth planner; someone who can share the burden of managing your money properly. They can help you to arrange your NISA investments as well as review your other investments and pensions. They will also be able to help grandparents and great grandparents gift to your child and, if there are inheritance tax concerns, ensure this is done most efficiently to maximise the amount of the gift.
This article is for information purposes and should not be treated as advice. Individual circumstances should always be considered prior to purchasing any financial products. For further information please contact your Wealth Planner.
Sanlam is a trading name of Sanlam Wealth Planning UK Ltd (Reg. in England 3879955) and English Mutual Ltd (Reg. in England 6685913). English Mutual Ltd is an appointed representative of Sanlam Wealth Planning UK Ltd which is authorised and regulated by the Financial Conduct Authority.
To find out more wealth management speak to your Wealth Planner.
If you currently do not have a Wealth Planner, we would be delighted to help, please email [email protected]
