Protecting your child’s financial future is something that every parent strives to do. The last thing that you would want is leaving them financially exposed,
which is why it is vital to start taking the right steps while they are still young in order to help them reap the rewards later. Here is what you need to know when it comes to protecting your child’s financial future.
Get life cover
It is something that we don’t like to think about, but what if you never get to see another sunset? Life is unpredictable, and one thing we know is certain, is death. Having a life cover in place is one of the affordable ways to ensure that your loved ones are financially secure once you have passed. You can pay as little as R149* a month for a life cover amount of up to R5 million.
Your child(ren) will be able to benefit from your life cover by being able to pay off any debt that you may have accumulated, set up an education fund, and to carry on life as they know it even when you are no longer around. Always remember to check the features along with the loadings and exclusions that come with your life cover to see if you are getting what you pay for.
Set up a savings account
A savings account is a convenient way to protect your child's financial future. You can choose to save 5% - 20% of your salary or setting a realistic goal of what you can afford to set aside will make it easier for you to save for their future.
Teach them to be money savvy
Being able to lead by example can make it easier for your child to get into the habit of being savvy with their finances. Get them into the habit of creating a budget and saving a portion of their pocket money towards an item or event they want to attend. Starting them out from a young age will also give them an advantage when they are older to separate their needs from their wants.
Set up a will
According to the Master of Courts, 70% of South Africans do not have a will in place. A will is something that many people shy away from due to the misunderstanding that comes with it. Setting up a legally recognised will can help you avoid situations where the people that matter the most to you are left empty-handed due to your assets being handled by a stranger or family member's that have ulterior motives.