Before the kids come along, things are, in many ways, more relaxed. You don’t have to worry as much about life and death situations, money, and who will take care of things when you are gone. However, all of that changes when you have a little one to care for, and in particular, it is essential that you both understand and prepare for your future financially. Something that you can read more about in my post below.
Education and University Funds
One of the biggest financial worries for parents of young families is how they will pay for their education and the cost of university. In fact, with the price of a standard three-year course in the UK coming in at around £9000 for tuition alone, it’s easy to see why it’s not just the baby crying that is causing new parents to lose sleep!
The good news is that the earlier you deal with this issue, the easier it will be to access the financial resources needed. To that end, many new parents get control of their finances and set up a saving account in which they can start to squirrel away money to help pay for the cost of university.
Start saving for your child’s future now.
Another option is to invest the money, with the view to receiving a more significant return, something that can then be put towards accommodation and living costs as well. Although, it is wise to check the possible risks as well as benefits when investing, as losses, as well as gains, can occur.
Young families often don’t give much thought to their retirement. After all, they have more pressing things to be concerned with such as dirty nappies and getting more than a hours sleep a night. However, it is vital that young families make provisions for later on in life now, and that they understand the various systems that are in place.
Of course in the UK you have a statuary system, as well as the option to contribute privately to a pension fund, while in the US there are a range of choices including federal retirement options, and 401Ks. Just be sure to know which opportunities you are eligible for and which will end up paying out the most in the long term.
No one wants to think about what will happen if they pass unexpectedly, especially if they have a young family. However, it is crucial that you have a plan in place in case the worse does happen. After all, you will not only want to make sure that your little ones have responsible and loving guardians that can take care of them, but also that their financial future is prepared for, and that they received the assets that you wish to leave to them.
With this in mind, it’s essential to get your will written and witnessed and then deposited with a solicitor. Also be sure to make any childcare instructions and guardianship very clear, and have this held with your legal counsel in case of an emergency. After all, in this situation, it’s always better to have such things and not need them, that the other way around.