When children arrive it is one of the most exciting times in your life. It also brings additional responsibilities and costs given kids can have a massive impact on a family’s financial situation.
When children arrive it is one of the most exciting times in your life.
It also brings additional responsibilities and costs given kids can have a massive impact on a family’s financial situation. Increased day to day living costs as well as the significant cost of childcare and many other expenses sometimes have to be paid from a reduced family income if one of the parents is taking time off.
This is a time when it is vitally important you have your finances in order and some of the following are just some of the issues to consider:
- Arguably of greatest importance, your protection requirements should be reviewed to ensure if anything happens to either parent, the family will be able to survive financially as far too often we hear of cases where little or no cover is in place and the unforeseen arising.
- Making sure you do not have money in poor investments or accounts paying low returns to maximise the wealth you have worked hard to build up.
- Establishing whether or not your mortgage is in a fixed arrangement or standard variable, where if the former, understanding when this expires to understand when action may need to be taken, and if the latter, working out whether the status quo could be improved.
- Wills need to be reviewed, or put in place if not already the case, and plans made for future years especially if you intend for your children to be privately educated and/or heading to further education beyond school.