Investing in Your Family’s Future

When we talk about investing in your family’s future, we’re not just talking about ISAs and investment portfolios. Granted, these things are important. However, ensuring your family is financially buoyant in the long run is also about giving your children a sense of confidence in their finances. Research by the Money Advice Service shows only four in ten children learn about money in school. However, childhood is when good habits are formed, so instilling positive attitudes towards money from an early age is a gift for life.

You can foster an understanding of money early on by getting your children involved in their own finances. Introducing a pocket money system can act as a rehearsal for real-life situations your children might encounter in the future. For example, you could offer them a small amount in return for making their bed every day for a week. Even playing ‘shop’ with fake tender can open up important conversations about weekly expenditures and the value of money.

Talking about savings and financial goals with your family can also help to build an attitude of openness when it comes to money. Try to form objectives that are measurable, realistic and time-bound – chances are, if your goal feels unrealistic, you will have less incentive to throw yourself at it fully. You might even set goals alongside your children. Whilst they’re saving for a new toy, you might be saving for a deposit. It’s good to share these goals and aspirations as a family – when you achieve them, you can celebrate together.

If you do decide to open a Junior ISA for your child, you could get them involved in the process too. Junior ISAs allow you to save on behalf of your child, laying the foundations for a solid financial future. This gives plenty of opportunity for learning about interest and the importance of saving. Similarly, setting up a separate investment portfolio for your children could help teach them about the power of a long-term approach to investing.

You might consider getting your child started with a pension too. It might seem strange thinking about your child’s retirement so soon. However, opening a junior self-invested personal pension (SIPP) on their behalf will ensure your child is comfortable at the age where they might have children or even grandchildren themselves. You can pay up to £2,880 into the pot each year and a 20% tax relief means that figure is topped up to £3,600.

Investing in your child’s future is about giving them a sense of freedom. What’s more, when you know your child is provided for, you protect your own peace of mind. A financial advisor can work with you to set financial objectives for your family’s future and even help you to plan your next adventure together.

If you would like to talk to a member of the team here at gpfm, please don’t hesitate to get in touch over email at enquiries@gpfm.co.uk or call 01992500261.

This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions. Investments can go down as well as up and you may get back less than you invested.

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About gpfm

gpfm are an independent financial planning company dedicated to the provision of personal, professional, and objective-driven advice for our clients. We have been awarded the Chartered Financial Planners title by the Chartered Insurance Institute for offering high quality, independent and informed advice that meets the needs of our clients.