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Financial advice for the whole family

Written by
Tom Lamb
Time to read
3 minutes, 49 seconds


When thinking about your finances, family is often a priority. You want to protect and give your best to your family, and you may also wish to leave a financial legacy that will benefit future generations.

Whatever stage of life you are at, it is never too soon to make a financial plan for your family.


Think about the next generation

Start by setting out your goals. What is it you want for the future of your children? This could mean many things, such as university, marriage or property. It will be unique to you and your family aspirations.

Whatever your goal for your children, you’ll need time and money to build that future. That’s where your financial plan and investing could help.

The great thing about goals for your children is that you may have time on your side. For example, if you have a baby and have the dream of them going to university, you have up to 18 years to invest. Over that long term period, regular investments could compound into a significant sum.

For example, if you invest £200 a month for 18 years, with an average 5% annual growth after fees, you could potentially have £62,900 for your child’s future.

It is important to note that this example is for illustrative purposes only. Actual returns will depend on what you invest in, how long it is invested for and how it performs over that period.

You may also want to consider the Junior ISA, in the 2022/23 tax year, the savings limit for Junior ISAs is £9,000. Anyone can pay in, and the child will gain access to the account once they are 18 years old.


Stay in control of your expenses

In order to invest money for the future, it may be an idea to start a family budget planner. This may involve a spreadsheet, a budget app on your phone, or a good old-fashioned pen and paper. Whatever your method, it could help you to keep track of your spending and saving. This is important for many families, as the cost of children and an active family lifestyle can become overwhelming.

Track your spending, but also track your investments too, topping up and closing your gap to goal when you can.


Build an emergency fund

In addition to investing towards the future of your family, it is also beneficial to think about the now, and what would happen if anything unexpected impacted you and your family. Therefore, having an emergency fund in place is a good idea, with around six months of salary a good amount of cash to have accessible. Any sudden costs or changes in circumstances are then covered by an accessible cash holding, leaving your investment untouched to grow towards the future.


Know your inheritance plan

It is never pleasant to think about, but practically you need to know what will happen to your family plans in the event of death.

For example, if you have elderly parents, are you aware of their will plans? Are you a beneficiary? How will inheritance tax affect you? These are discussions worth having, to ensure the financial legacy of your family.

Likewise, it is never too soon to think about your own will. Plan out your assets and liabilities now, and discuss with your beneficiaries what your wishes are. Remember, money left invested in a Pension is exempt from the Inheritance Tax threshold of £325,000.

If you have a Pension, it’s important to state your beneficiaries in what’s called an ‘Expression of Wish’. This tells the Trustees of your Pension who you would like the money to pass to on your death, and can be split by the % you wish to give each beneficiary.

True Potential clients can create and amend their Expression of Wish forms through their account, by logging in by app or online and clicking into their Pension.

Don’t let a lack of financial planning may mean you can’t leave the financial legacy you would have wished. Put a plan in place now with your financial adviser and speak with your family about all your financial plans.


If you need financial advice or would like to open an account yourself; click START INVESTING or call our dedicated team on 0191 625 0350


With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest. Tax examples are correct for the 2022/23 tax year at the time of publication, but tax rules can change at any time. This blog is not a personal recommendation or financial advice.



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