Caring & Sharing: Financial Essentials To Put In Place For Your Children
Part of every parent’s anxiety can stem from providing for their child’s future. And it’s much more difficult now, with the rising inflation and the potential to earn more money becomes a lot harder with temporary contracts and freelance work. But there are things that you can put in place if you have concerns about your children’s financial welfare, especially if they are young children and you are of a certain age where health concerns are a priority on your list. Here are three vital ones.
Insurance
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It is something that doesn’t really cross your mind when you’re younger, but it’s sensible that the younger you are when you get a life insurance policy, the better it is in the long run. It may seem somewhat fruitless paying money every month towards something you don’t necessarily get the benefit of, but as you get older, it can be harder to find a life insurance policy to cover you if something happens. The two main insurance policies to look at are term insurance and whole life cover. There are benefits to both, but you need to weigh up the term vs whole life insurance policies for you when it comes to cost and how feasible it is to get a certain policy. But regarding providing for your children, it is important to have something in place if you were to pass away suddenly with a mountain of debt.
A Will
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Even if you don’t have any assets or you don’t own your home, it’s still best to put a will in place to save disputes with family members down the line relating to who gets what. It makes sense to put one in place. It does depend on where you live, but if you die without a will, the assets you have may not be turned over to your significant other right away. For example, in the USA select states give ⅓ of your assets to your partner and then assign somebody to manage the funds of your children until they are 18 years old. At least with a will in place, you can state directly who will have what.
A High-interest Bank Account
A way to accrue interest on your finances is to put your money, however little it is, into a bank account with a high-interest rate. And because people tend to talk about doing this but never find the time to come round to it, it’s always best to get it done as soon as you can, because, in many ways, it’s getting money for nothing. If you are earning a decent wage right now, but you are in a financially precarious position, like being a freelancer, by putting it in an account where you can accrue a decent percentage on top of what is already in there, you are finding a little way to prepare for your children if something was to happen. This additional percentage could help towards financial problems your children may have further down the line.
