5 smart money moves to make for your child
As a parent, you’d do anything for your little one. So, why not make some smart financial moves now, to benefit your kids' future? Here are five smart money moves you could make for your child!
1. Make sure your debt is covered
Accruing debt over the years isn’t uncommon. But leaving a legacy of debt to your loved ones, if the worst happened to you, isn’t the best parting gift.
One of the most significant debts any of us will ever have in our life is a mortgage. So ensuring that your mortgage is covered by a life insurance policy is crucial.
A mortgage protection policy can cover the remaining balance of your mortgage, meaning if the unthinkable suddenly happened to you, your policy could pay out a lump sum. This lump sum would be the equivalent to the remaining balance on your mortgage.
With the mortgage covered by your policy, your family would have one less thing to worry about during a tough time.
2. Teach them about finances
Whether you like it or not, money is a part of life. But it’s not always something that’s taught.
Teaching your children the basics of money is one of the best ways you can prepare your children for their future.
Whether it’s teaching them what a mortgage is or showing them how to budget and save, educating your children about money could give them a head start to navigating the real world.
3. Children’s critical illness cover
As a parent, there’s no worse thought than your child falling ill. But what about the financial implications? Well, more often than not, when you take out critical illness cover with one of the UK’s leading life insurers, you’ll have the option of adding children’s cover to your policy.
If your child suddenly became ill, mundane tasks such as paying the bills and keeping up with mortgage payments seem inconsequential. But sadly, life doesn’t stop for illness. Children’s critical illness cover can help take care of the financial side of things, if the unexpected were to happen.
Taking out children's critical illness cover now, could potentially save you from a huge financial strain later down the line.
4. Starting budgeting now
The benefits of a disciplined budget cannot be overstated.
Creating a comprehensive, realistic budget that covers your family’s financial needs and future goals is essential. The sooner you start budgeting, the sooner you'll understand where your money is going and how you can direct it towards your child's future.
5. Review your life insurance
You should review your life insurance policy at least every couple of years. The reason you should be reviewing your cover is simple; your circumstances change. As you get older, your life is likely to change. We don’t just mean starting a family, either.
There are many reasons you need to review your cover like; tying the knot, starting a family or extending your family, quitting smoking, changes to your health, or even starting a new job. Regular reviews of your policy ensures you're accurately covered at all times.
When you take out cover with Caspian, you don’t need to worry about calling us to review your policy, as we’ll contact you every couple of years to check you’re still happy with your policy.
The bottom line
Don't let procrastination or fear keep you from making the future easier for your children.
By making these smart money moves, you can ensure your child is financially protected and teach them invaluable lessons about financial responsibility. Remember, time waits for no one, so take that crucial step today for a more secure future for your child.
