Are you a new parent? Hopefully our financial advice will help…
Parents can often find their time entirely taken up with looking after the newest member of their family. It’s a life changing experience that will have an impact on their finances too.
For any couple, one of the biggest adjustments is managing on one salary, so working out a budget will ensure that they have taken care of the monthly overheads are taken care of.
As well as statutory maternity pay or maternity allowance, you may be entitled to other things like tax credits or child benefits, free NHS prescriptions and dental care.
Protecting what’s important
Parents want to do what’s best for their children, but many overlook putting insurance plans in place in case anything should happen to either of them. It may be an uncomfortable topic to discuss, but nobody would want to leave their family struggling financially. The monthly cost of a protection plan is a lot less than many people imagine, often no more than a round of coffee and cake on the high street.
Saving for their future
A Junior ISA is a tax-free savings scheme that enables parents to put money aside either into a cash or stocks and shares account for their child’s future. The allowance for the 2019-20 tax year has been increased to £4,368. From their 18th birthday, the child can access their savings.
Those who want to plan even further ahead can open a pension for their child, saving up to £2,880 per year tax-free. Tax relief on pension contributions at 25% means that the amount actually invested becomes £3,600. When the child reaches 18, they can continue to invest in it and access their pension in later life.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.
3ONS, Jan 2019 and 4Oct 201
Clifford Osborne are Independent Financial Advisors (IFA) based in Eastbourne, East Sussex, offering mortgage advice, early retirement advice, pension advice and more. Our clients often come from Uckfield, Lewes, Brighton, Tunbridge Wells, Hastings, Bexhill, Newhaven, Seaford, Crowborough and further afield. Read more mortgage news and other financial advice in our blog.
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The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.
It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
The information contained within the blog is for information purposes only and does not constitute financial advice.
The purpose of the blog is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.
