Having children is one of the happiest and most rewarding moments in a family’s life. The excitement is like no other and from the moment you know you are expecting, all your time and energy is invested in getting everything ready until the birth. But, you must also face a lot of change; especially with your financial situation.
As the expectant mother you may have a flourishing career so you should expect a drop in income as you may be on maternity leave for a few months. To understand your finances in more detail a good plan would be to draw up a budget and make a list of all your current incomings and outgoings – think about your biggest costs and whether you can cut these down. You should also think about a good savings plan or increase your current savings pot.
So what about your child’s future? A savings plan such as a Junior ISA will build substantially over the years and can help with education fees and even get their foot on to the housing ladder – let’s not forget the tax-efficient benefits. They can’t withdraw the money until they are 18 so consider it as one of the best investments in your child’s future you could make.
Let’s not forget the grandparents who are usually very keen to contribute to their grandchildren’s future. As well as contributing to a savings account they could also include them in their Inheritance Tax planning.
These are just some examples of the financial planning you should be thinking about and most if not will have tax-benefits. Others include:
- Protection needs
- Education saving
- School fees