Pre-family financial planning

With a huge array of preparations to make when expecting a baby, you may understandably overlook those of a financial nature. While it may not be the most exciting task to tackle on your to-do list, it is really important to engage with your finances at this critical stage of life, so here are some top tips to help you on your way…

PLAN AHEAD

The cost of raising a child is expensive, and parents will typically find themselves having to meet these new costs on a significantly reduced household income. Childcare can be factored in and, for some, school fees will be a consideration. Comprehensive financial planning prior to the new arrival is therefore crucial.

KEEP CALM AND SAVE

By opening a savings account before you start a family, that you save into regularly, you will be able to amass funds required to cover initial expenses and to help finance the early months when most new parents take a hit to their income. It will also give you options, should you decide you want to take a longer maternity leave for example. In addition, by reducing outstanding debts, you can save money in the long run.

GROWING UP

As well as finding the money to meet the initial short-term costs associated when expanding your family, there are a number of other financial planning decisions to consider; for example, updating your Will, extra life protection, changing the named beneficiaries in your pension and opening new savings or investment accounts such as Junior ISAs.

REVIEW AND RELAX

If you are considering parenthood, it makes sense to review your finances to ensure a financially secure future for you and your whole family. Get in touch, we can help you.

The value of investments and income from them may go down. You may not get back the original amount invested.