Financial advice for new parents
Parents can often find their time entirely occupied with looking after the newest family member. It’s a life-changing experience that will impact their finances too, so financial advice for parents is essential.
For any parents, one of the biggest adjustments is managing on one salary, so working out a budget together will ensure that you can take care of the monthly overheads.
As well as statutory maternity pay or maternity allowance, you may be entitled to other things like tax credits or child benefits, free NHS prescriptions and dental care.
Protecting what’s important
Parents want to do what’s best for their children, but many overlook putting insurance plans in place in case anything should happen to either of them.
It may be an uncomfortable topic, but nobody wants to leave their family struggling financially.
The monthly cost of a protection plan is much less than many people imagine and often no more than a family might spend on a round of coffee and cake on the high street.
Saving for their future
A Junior ISA is a tax-free savings scheme that enables parents to put money aside either into a cash, or a stocks and shares account for their child’s future.
You can contribute up to £9000 annually, and parents and grandparents can pay into it. Some new parents pay some or all of their new Child Benefit. On their 18th birthday, the child can access their savings.
Long Term Planning
Those who want to plan even further ahead can open a pension for their child, saving up to £2,880 per year tax-free.
Tax relief on pension contributions at 20% means that the amount actually invested becomes £3,600. When the child reaches 18, they can continue to invest in it and access their pension at age 55.
There are many flexible ways to cover all the points above and don’t hesitate to contact us if you wish to discuss further.