4 ways to future-proof your family’s finances

As a parent, you want to give your children the best start in life as well as ensuring their future is just as rosy. Luckily, there are lots of simple ways you can make your family financially secure for years to come.

Having a financial plan for your loves ones not only gives you peace of mind, but also means you can give your kids a helping hand with those milestone moments as they grow older.

From setting budgets to investing in life insurance and pensions, here are 4 things you can do today to build up your family’s financial resilience.

Work out your budget

Set yourself a weekly or monthly family budget. This will help to make sure you’re not spending more each month than you’ve got coming in.

It’s also a good time to overhaul your outgoings. Shop around for utilities suppliers to get cheaper rates and cancel any memberships or subscriptions that you’re no longer using.

Take out life insurance

It’s something we all avoid thinking about. However, if you or your partner should pass away, you’ll want your family to be financially secure.

Life insurance is designed to pay out money to your loved ones if you die, with fixed monthly payments.

Pay into a pension

Another way to future-proof your family finances is by paying into a pension. It’s up to you how much you save for your retirement and which type of pension you go for.

A good tip to work out what to pay is to take your age when you start your pension and halve it. Then, put this percentage of your pre-tax salary into your pension every year until you retire.

For example, if you start your pension when you’re 30, you’d put 15 percent of your salary aside until you finish work.

Make a will

Whether you’ve just had a baby or your children are older, making a will is a simple piece of financial future-proofing you can do right away.

Even though it’s probably the last thing you want to think about, it's a key part of your financial planning. Writing a will means you can decide who will look after your kids if you pass away, as well as putting financial arrangements in place for your little ones when they are older.