Many new parents fall short in focusing on the big picture. While you are excited about having one new member in your family, you should also worry about keeping your finances on track. So, we have got some tips for financial planning for families in London.

Consider Both Life And Disability Insurance

Having adequate health insurance is crucial. Make sure that you have life and disability insurance as well. Life insurance can help in paying for things such as school tuition, a paid-off mortgage, or money for a wedding. Your family is growing and so are your financial needs. Make sure that you have enough financial resources available to support your family when you are not there for them. Your family members can live with peace of mind.

Disability insurance helps when one or both parents are unable to work due to a disability. This disability can be due to an injury or illness. Make sure that your employer-provided insurance can cover expenses such as debt, child care, mortgage, and household expenses for a reasonable span of time.

Increase Emergency Fund

Change your “rainy days” planning when you start to raise a child. In case you lose your job, fall ill or have to pay for an unexpected large expense, you should be able to run your household smoothly. So, have emergency funds to cover your living expenses for three to six months. Don't keep all of your money in a single account.

Take Advantage Of Tax Breaks

Child care is always expensive for many working parents. This is the reason why there are tax advantages for families raising kids. Depending on your income and expenses, if you meet certain criteria, you can get tax deductions according to the laws of the place. If you are low earning family, you should work with a financial advisor offering financial planning for families in London. The advisor can tell you about all the deductions you can cash in on.

Start Saving For College

Education is important and it is going to be more expensive for your child. So, start saving for college now. Starting saving earlier is better for you and your child. You can maintain a separate account to save for his/her education.

Think About Retirement Savings

When it comes to choosing between saving for retirement or saving for college, save for retirement. Loans, scholarships, grants, part-time jobs, and several other options will be available to your child for paying for college. However, there is no way you can make up lost retirement savings. So, prioritize saving for retirement.

Update Estate Planning Documents

Sit with a lawyer and prepare your will. In your will, indicate who will be the guardian for your child in case you have involved some mishappening and you are not there for your family. When it comes to financial and health care decisions, include the power of attorneys. Let your lawyer help you.

Financial planning for families in London is a must when it comes to raising a child. So, find a good financial advisor in London and get help.

Author's Bio: 

I am Daisy Bell and a pro-level blogger with years of experience in writing for multiple industries. I have extensive knowledge of Food, Fitness, Healthcare, business, fashion, and many other popular niches. I have post graduated in arts and have a keen interest in traveling.