How to Build Your Child’s Wealth
You’re probably already aware of the importance of building your child’s wealth; it’s one of the most powerful gifts you can provide. Wealth that grows with them, creates a safety net that will one day help with university fees, a deposit on their first home, or give them the choice to travel, or follow their vocation. And the sooner you begin, the greater the potential becomes.
At Harpur Wealth Management, we help families who are ready to move from intention to investment. We do this by creating clear, personalised strategies to build a prosperous future for your child. Our role is to be your professional guide, working with you to build a simple yet powerful investment plan for your child’s future.
The Way Generational Wealth is Changing
The way we think of generational wealth is in a period of flux. Rather than a single, lump-sum transfer late in life families are now appreciating the benefit of developing an ongoing strategy of support for their children.
Many parents no longer just want to leave an inheritance; instead they prefer to play an active role in their child’s financial journey. This approach means that families can help ease the burden of student debt or provide the seed funding for a new business. This support for younger generations allows them to make important lifestyle choices as they establish their careers and a create a foundation for their own families.
A Financial Plan For Younger Generations
You may already be aware of products like Junior ISAs and Junior Pensions, but an effective financial plan goes beyond selecting products. It looks at what happens inside these accounts and whether this should change over time.
For example, your Harpur Wealth financial planner would want to discuss: What level of investment risk is right for, say, a 10-year timeframe for an ISA, versus a 40-year one for a pension? Should the portfolio be designed to become more cautious as your child approaches 18 to protect their capital?
Our Multi-Generational Approach to Wealth
At Harpur Wealth Management, we see a family’s wealth as a connected system where one positive action has the potential to create multiple benefits.
The financial strategy we design for children or grandchildren is a good example. While it secures their future, it can also be designed to work positively with the financial goals of other generations. This could mean structuring gifts from grandparents to be as efficient as possible for their estate, or that your contributions benefit your own legacy planning.
Conversation is a Great Gift Too
The most valuable part of this process usually isn’t the final sum; rather it’s the conversations you are able to have along the way. When children are included in discussions about saving and investing, money becomes a normal, healthy topic for them. You’re planting the seeds of financial literacy from a young age, helping them understand how wealth is built.
Take the Decisive Next Step
From securing young people’s future, to teaching them financial responsibility, the benefits of a well-structured plan are clear to see. The difference between an intention and a successful outcome lies in professional, personalised advice that considers your unique family circumstances. If you are ready to take the first step, we are here to help you with your planning.
Ready to put a plan in place? Contact our advisors at Harpur Wealth Management for a free consultation regarding your family’s goals – 01234 924620
Disclaimer
This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions.
The value of your investment can go down as well as up and you may get back less than the amount invested.
‘The Financial Conduct Authority does not regulate taxation advice’
