A Head Start for our Children
Martyn Hurll, Chartered Financial Planner, from Peter Harding Wealth Management explains how we can give our children a head start in life.
We all want the best for the children in our lives. We don’t know what their future will hold, but we do want to make sure they have every opportunity to do well and be happy, whatever they eventually decide to do. Of course, money isn’t everything but it can help to give our children a head start. It can give them a good education, open up opportunities and help them get established when they grow up. Starting to save money now might be the difference between whether or not they can afford to do what they would like when the time comes. It’s one way that you can give them the best start in life.
Intergenerational Financial Planning by Peter Harding Wealth Management
The simple fact of the matter is that the financial world in which our children are growing up is a very different and difficult one. If saving for our children was once regarded as an aspiration, it is increasingly becoming a necessity if we want them to have the best possible start to their adult lives. Consider for a moment some of the things they might want to do and that you might want to help become a reality. Think then about how much some of these things cost today. The average cost of UK full-time tuition fees in 2016/17 was £9,188* and a recent survey** calculated that the cost of studying in the UK is around £22,000 per year. Given these figures, it is no surprise that many graduates complete their education saddled with debt.
After education comes the cost of setting up a home. According to a recent report, the average deposit on a house for a first-time buyer is now £32,000 (source: Mortgage solutions.co.uk January 2017) which means many young adults continue to live in the parental home into their 30’s. Without a helping hand, their hopes and dreams might remain just that but, with sensible financial planning, you can make them more achievable. However you want to invest, you need to choose a simple, flexible and tax-efficient way that gives them the potential to provide for their future. Perhaps a Junior Individual Savings Account is the right solution or it might be a Unit Trust portfolio: both allow you to save regular amounts each month or invest a lump sum whenever you wish. Intergenerational financial planning means the whole family can contribute too, including grandparents. This way, families can share their combined wealth for the benefit of the younger generation, helping to give their loved ones a head start.
How much do you need to invest? Quite simply, as much as you can afford. The important thing is to start investing as soon as you can so that your money has plenty of time to grow. As with all financial planning, seeking professional advice is key and will help you make the right decision so you can shape the future of the children in your life. For more information please call us on 01747 855554, email peterhardingwm@sjpp.co.uk or visit our website www.peterhardingwm.co.uk.
*Source: Studentloancalculator.co.uk 26 March 2017 ** Source: bbc.co.uk/business March 2017