STARTING A FAMILY
THINGS TO THINK ABOUT
When you have a young family there are lots of things to think about and one key thing that many people worry about is the financial impact. In this quick guide we will cover the main areas you will need to think about at this stage of life. These topics can be covered in much more detail and in a way that targets you and your family in our coaching sessions.
INCOME AND BUDGETING
Income levels often drop significantly when children join the family and costs will go up. it is important to plan and have a budget, this will help reduce at least one area of stress and let you focus on what is important, the new addition.
EMERGENCY FUND
Always a cornerstone to a secure foundation financial plan, it is even more important to have a cash float to give room for manoeuvre if unexpected costs, outside of the above budget, arise. You should aim for this to be equal to 6 months of your costs.
LIFE INSURANCE AND WILLS
These are important to have in place. although none of us want to think about the worst case scenario, one of the responsibilities of parenthood is ensuring you have. The correct level of life insurance and a will secures this and provides peace of mind.
PENSIONS
Did you know that you can start a pension for your child from the day they are born? you can add up to £2,880 a year (which becomes £3,600 thanks to tax relief). Over their lifetime the contributions and growth can provide a very good pension for them.
