#Collaborative post
Financial security refers to a state where people can freely fund their preferred lifestyle, work towards financial goals and handle emergencies without stress. Indeed, financial security offers many benefits worth considering. It promotes a debt-free life, financial control, and reduced stress and anxiety. Despite these benefits, approximately 39% of Brits aren’t confident about their money management. Worse, almost 9 million Brits are in debt while 11.5 million have less than £100 in savings. It becomes imperative to secure your children’s financial future to prevent them from becoming part of the statistics. Here are some ways to achieve this.
- Teach them about money management
One of the best ways to secure your kids’ financial future is to make them financially literate. Not only does it help them to avoid bankruptcy and debt in the future, but they can effectively make future financial decisions. Likewise, it enables them to appreciate the value of money and avoid splurging their current allowances on trivial things. Moreover, they will be more equipped to live happier and stress-free lives. Although financial literacy is taught in British schools, only 27% of kids enjoy learning about money. However, you can get your kids to love and appreciate money management training with the right steps.
You can begin by teaching them the difference between wants and needs. This way, they can understand and prioritise the most important expenses. Also, teach them about the benefits of saving and set saving goals to keep them motivated. Encouraging them to earn their money will also imbibe the values of hard work and wise spending while eliminating the sense of entitlement. For instance, you can offer allowances based on how often they perform their chores.
- Don’t ignore insurance
Admittedly, no one wishes for unpleasant situations. However, life can throw certain events your way to jeopardise your financial situation. For instance, passing away suddenly can lead to income loss that can affect your child’s education. This, in turn, can also affect their ability to get high-paying jobs. Therefore, you’ll find it helpful to secure the needed insurance policies to cater to these situations. A life insurance plan ensures that your kids’ educational and other financial needs are secured, even in your absence. Likewise, an education insurance plan is another option, so keep this in mind. It’s important to start early to get a more substantial amount in the future. Also, ensure that you’re working with credible insurance providers to prevent future discrepancies.
- Create a will
It’s usual for people to refrain from creating their wills in their younger years. Research indicates that only 4 out of 10 Brits have wills. Also, approximately half of those who own a will have not updated theirs for over seven years. However, not owning a will may not be the best for your children. For starters, they can be cheated out of their inheritance upon your death by selfish family members. Moreover, it can lead to family disputes and long court cases. Therefore, creating your will is something you should consider. It’s prudent to work with family lawyers to create a legally binding will for the best results.