Giving your children an early inheritance, rather than waiting until you pass away, can help them during key stages of their lives.
Here are four examples of how you can enhance their financial security during your lifetime:
- Home deposit: Paying some or all of your child’s deposit can help them break into the property market, avoid expensive mortgage insurance and build equity for their future.
- Mortgage repayment: Contributing to their mortgage, either via an offset account or extra repayments, can reduce the interest paid and shorten the loan term, saving them money over time.
- Reducing education debt: Reducing your child’s student loan debt can free up their cashflow and help them cope with the rising cost of living and any unexpected expenses.
- Kickstart investments: Giving a small sum can motivate your child to develop a savings plan, helping them to combat inflation and build long-term wealth.
The Wealth Mentoring Group 