Childhood is re-lived through your child. Parents want the absolute best for their children with the sole aim of seeing them happy and healthy. It is the responsibility of parents in single-income homes, the role of the provider, to secure their children’s financial future. To provide them with a happy home, a good education, and a good upbringing to help them become responsible adults. Success comes from planning, whether it is your professional or personal life. It is particularly relevant for finances and providing a bright future for your child. Take these financial planning steps to ensure you’ve optimally secured your child’s financial future.

Now is the best time

You don’t have to wait until your child is older to start saving. Start saving and investing as soon as you start family planning. It will be a good starting point for financial planning. Ask yourself. How do you envision your future? As a family, what goals do you hold dear? Discuss wealth management with your spouse. What are your hopes for your child? What are your risk capacities and time horizons? You would consult your doctor before taking medicine. Similarly, it would be best if you only made investment decisions after consulting a trusted financial advisor.

Safeguard your money.

Would you be surprised if we told you that your money is at risk? If you are not accounting for inflation. You are responsible for losing the purchasing power of money and potential gains. Your investments must beat inflation. Plan an education fund, a marriage fund, or higher education with this in mind. These are high expenses that increase in cost over time.

Budgeting is a crucial component.

Add up the new investments and expenses you will incur. Taking stock of them beforehand will prevent unwanted anxiety in the future. It is helpful to keep track of your expenses and income because it will help you identify and eliminate unnecessary costs. It might be a magazine subscription that automatically renews or a gym membership that you don’t use.

Have short-term and long-term goals.

As you consider your time horizon, divide your goals into short term and long term objectives. By separating them, you will have a clearer idea of your timeline and what investments you need to make. You can make riskier investments and have more time to course-correct in the long run. Investing for short-term goals can be done in instruments with a medium-low risk with high liquidity.

Regularly evaluate your investments since the market is volatile and your needs change along with your lifestyle changes. Shift the investment mentality from following the herd to staying committed to your goals. Due to the evolving lifestyles and conditions, you will need to review your investments regularly and reinvest accordingly.

Health & Life Insurance.

The genie in your child’s life is you. As well as protecting him, you power his aspirations and ensure his bright future. To defend him today and tomorrow, you need adequate coverage in your presence and absence. It applies to your spouse as well, regardless of her profession. Her presence in your children’s life is just as valuable as yours. Set up insurance as soon as you can.

Hygiene check.

Nominate your children and spouse on all your investments. Don’t put your child and family through any unpleasant experiences later on. People often forget to update this crucial detail in their investments, resulting in a mess.

Parenting is not synonymous with compromising personal goals. Retirement planning and securing your later years are as important as securing your child’s future. 

You can make your family’s dreams, a brighter future, a reality through proper planning. Changing a few things is all that is necessary. Start by seeking the assistance of a reliable fee-only financial advisor. You can utilise their extensive expertise and industry knowledge to create a customised financial roadmap to ensure your child’s future and achieve financial independence.

Whether your dreams are big or small, it is never too late to start planning for your finances and building your wealth. We will help build the financial plan and investment strategy you need based on your goals.