Ten ways to get your finances in shape for a new arrival!

29 July 2013

As the Royal Palace announces the safe arrival of a future heir to the throne, we take a look at things to think about if you're planning or expecting a special addition to your own family. Worrying about money is one thing new parents Kate and William won't have to do. But for everyone else there's no doubt a new baby can put a strain on your finances. Planning ahead can help.

Here are our top tips to getting your finances fit for a prince (or princess):

1. Understand what maternity or paternity benefits you're entitled to

For example, that mothers-to-be are entitled to paid time-off for the birth, and although there are statutory periods for maternity leave, some companies offer extra time off.

2. Check what tax benefits you might be able to claim

Bringing up a child is expensive. Each family gets a child relief allowance that can be offset against their tax assessment amount.

3. Put together a budget and think about how it might be affected by having a baby

For most people a new baby has a double-whammy effect on their finances. Income usually drops, at least for a while, and expenses go up. Drawing up a budget can help you get to grips with what to expect.

4. Make sure you have life insurance in place

Once you have dependants it's vital to get life insurance to pay off your debts and provide your family with enough money to live off if you die.

5. Write a will

Writing a will becomes an even more important thing to do once you have children. That's because you can use a will to appoint guardians so that you know they'll be looked after if the worst were to happen.

6. Think about what would happen to your family finances if you or your partner fell ill.

You may need income protection insurance which pays out a monthly income if you're unable to work because of illness or disability. State benefits aren't as generous as you may think.

7. Think about what childcare you might need and how you might pay for it.

There may be financial help available through your employer, but you should also think about nursery education, infant care, and help during the days you are at work.

8. If you've got any spare cash each month, you may want to think about saving and investing for your children.

There are different ways to save for children depending on whether you want them to be able to access the money or whether you want to tie it up for their future.

9. If you want your children to be privately educated, start planning now for how you'll pay those fees.

If you plan to use income to pay the fees, you might want to think about income protection insurance in case you couldn't work because of illness or disability. If you plan to save, the sooner you start the better

10. Speak to an Expert and plan ahead

Globaleye has tailored programs for families and can help set up some of the plans above. Talk to a Wealth Manager today to find out more.

Source: Moneyvista

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