>

Please feel free to get in touch

Point of View Archive

The school bell has rung; the costs have begun


The school bell has rung at schools, colleges and universities across the UK and this month hundreds of thousands of students will return to their classrooms.

September marks the start of a new academic year and for those with children, it is the annual reminder of the fast approaching financial pressures which lie ahead.

Whether it is the cost of private school or university fees, music lessons, school trips or driving lessons, having children can add layers of financial strain to any marriage or partnership.

Simple Wealth Planning measures can help to avoid the trigger points of financial strain in the future, allowing parents to enjoy the milestones in their children’s lives, rather than them becoming trigger points for worry.

Planning for your child’s future 

 

  1. Identify the costs. Set a realistic figure for school or University fees and estimate project costs such as learning to drive. Mapping out the significant spends for a child can be straightforward and will provide you with saving deadlines and sums to achieve.
  2. Don’t rule out investing rather than saving. If you have a new baby and want to save for University costs, then you may want to consider stocks and shares ISAs, rather than cash ones. Stock-market linked investments are best considered when the money is not needed for at least five years, preferably more,  as  time is required for any rises or falls in the stock-market to even out,  and hopefully provide greater returns than would be available with a savings account.
  3. Talk to grandparents and great grandparents about your financial plans for your child. If you start saving goals specifically and early, then relatives have the opportunity to contribute. They may prefer to make a donation to a University fund, rather than buying expensive gifts for birthdays and Christmas.
  4. Don’t save for your child in isolation to your other finances. Wealth Planning is about mapping out your income now, so it works better for you in the future. Your child’s future costs should form part of these plans, but do not compromise other essential costs, such as life insurance or contributing into your own pension.
  5. Speak to a financial adviser; someone who can share the burden of managing your money properly. They can help you to arrange your ISA investments as well as review your other investments and pensions. They will also be able to help grandparents and great grandparents gift to your child and, if there are inheritance tax concerns, ensure this is done most efficiently to maximise the amount of the gift. 


If you would like to find out more about investing for the future, please do not hesitate to get in touch get in touch, we’d love to help. 

Date issued: 11.09.15

Please remember any views or facts expressed above are based on information received from a variety of sources which we believe to be reliable, but are not guaranteed as to accuracy or completeness. Any expressions of opinion are subject to change without notice. None of the information should be regarded as advice. Past performance is not a reliable indicator of future results. Investing involves risk and the value of investments and the income from them may fall as well as rise and is not guaranteed. Investors may not get back the original amount invested. Any tax treatment is dependant upon individual client circumstances and may be subject to change.

Sanlam is a trading name of Sanlam Wealth Planning UK Limited (Reg. in England 3879955) and English Mutual Limited (Reg. in England 6685913). English Mutual Limited is an appointed representative of Sanlam Wealth Planning UK Limited which is authorised and regulated by the Financial Conduct Authority.

Registered Office: St. Bartholomew’s House, Lewins Mead, Bristol, BS1 2NH.

Investing involves risk and the value of investments and the income from them may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested.