Starting a family is a decision that will impact the rest of your life in many different ways, including your finances. Family financial planning enables us to make preparations in order to provide and accommodate the necessary changes to our finances that we will inevitably go through when deciding to introduce a new addition to the family.
Maternity Leave and Beyond
Making the decision to start a family is a huge step to take for anyone and it will inevitably have an effect on your long and short term financial situation. Calculating how much maternity and paternity pay that you are entitled to is a good starting point, as well as making a list of expenditures that you expect to have for items such a cot, car seat, pram etc. It is surprising how much all of these things can amount to, so it is better not to go into the situation blind, but prepared.
It may be that it is a better financial option to stay at home with your child rather than return to work, and incur childcare costs but this is something that is of course personal to every individual. Researching your options and weighing up the financial outcomes for returning to work full time, part time or not at all is a good idea.
Long-term family financial planning
The costs of starting and growing a family are a long-term factor to consider financially. Setting family financial planning goals will enable you to have a clearer idea of your financial situation, any changes that you may need to make and with help you to make an ongoing plan. Creating savings accounts for your children’s future is something you may wish to consider. University funds, wedding savings, and money for your child’s first car may seem a far way into the future when they are still gazing up at you from their cot, but making plans for these situations early on will give you a head-start.
By making plans for future generations of your family, you will have an idea of inheritance tax, caps on the amount you can give at any one time for events such as weddings and property options i.e. transferring houses into your child’s name etc. Speaking to experts on these areas will arm you with the knowledge to make a viable plan for the future of your family and
If you would like some advice and guidance on family financial planning, our trusted and knowledgeable advisors at Cotswold Financial Planning are here to assist you in your financial queries. Contact us on 01608 651608 or via our enquiry form and we will be happy to discuss your requirements.