If you have children under 16 (or under 18 in full time education or training), you will be in receipt of Child Benefit. For one child, you will receive €140 per month, for two children €280 per month, for three children €420 per month etc. For more information on the specifics of Child Benefit, you can see the details here on citizens information.
How do you plan on funding your children’s future? Why not set aside a portion of the Child Benefit and invest for their future. This can be used to fund their education or help them to buy a home etc. It can be held in trust for them, or you can keep it in the name of the parents/guardians and gift it to them in the future. It should be noted that gifting could have an impact on any future inheritance they may receive. For more information on Gifts and Inheritance, check out our previous blog on this topic.
You can invest as little as €100 per month into a regular savings plan with a Life Company, which is likely to outperform deposit rates over the term of investment. Deposit rates are at an all time low, and are unlikely to keep pace with inflation over the next while. If they are growing at a rate below inflation, then the real value of is depleting. In order for your savings to show real growth, it is recommended to assume some element of risk. Of course, the level of risk to be taken would depend on the individual. This should be decided after completing a Risk Assessment Questionnaire.
What could you do for your child? It is never too late to begin a savings scheme for your children, no matter what their age. We would be delighted to discuss your options with you, and recommend a product that is suitable for your specific situation.
Get in contact, and we will help you to plan your children’s financial future.