Paying for your dear little things

 

It is as if children have become a luxury item. From their first squeal through to the end of their time at university, you will pay out more than £185,000*. This can be a hefty chunk of your after-tax income and it is therefore worth planning ahead to minimise the burden.

 

However much you have available, you can find an option which is suitable. Some will be specifically designed for children – and some will even have tax benefits thrown in.

 

Choosing the right option

 

First, there is the Child Trust Fund which the Government starts for you by offering a donation. Invested well, this can make an important contribution to future costs, particularly if you – and other relatives or friends – top it up over the term. Second, there are the friendly society children’s bonds, with low minimum investment levels, available to anyone connected with you, including friends and god parents as well as close relatives.

 

Both these options come with tax breaks. However, the list does not end there. With many generic products also now offering minimum investment levels of just £20 or £30 a month, a standard fund may be just as suitable. Taking costs, your tax position and your attitude to risk into account, some could be used instead of – or perhaps as a top up to – the more tax efficient options.

 

Financial Planning for your children’s future

 

With such a large range of options available, making the right choice can be difficult – and take a significant amount of your time as you search through the different offerings.

 

Alternatively, we can help. Not only can we quickly outline what the different options mean for your child’s future, we can also assess your financial needs in the context of your financial situation, with full knowledge of the wide range of tax efficient financial products available.

 

For more advice and information on how you can make the most of the money available to your child, please give us a call on Scunthorpe 330088.