Investing in Your Children’s Future
Under the current economic situation, it is becoming hard to raise a family in Newcastle or anywhere. Cash flow has become a significant obstacle as we try to survive and thrive. The cash-flow problem, in turn, makes people consider financial planning for them to be on the safe side. Financial planning Newcastle has become one of the most lucrative businesses. Almost everyone wants to have a financial planner to plan for their future. Raising children is a very costly affair. A study carried out ten years ago by the University of Canberra shows that the estimate of raising a child from one year to eighteen years ranges between $237,000 to $550,000 (NATSEM, 2013).
financial planning Newcastle shows that there are a lot of variables that arise during budgeting. These variables include Extra food, clothes, recreation, bigger houses, and bigger cars. With all these variables, you can easily conclude that raising children isn't a cheap undertaking, and the cost will keep going up as time goes by. The extra costs that tend to arise are very damaging to young families. Financial planning Newcastle shows that at least once, a typical Australian family stops being a twoincome household to becoming a single-income household. In a one-income household, budgets tend to become tighter, and plans for saving and investing are easily put on standby.
What do you need to save for? The thought of what you will become years and decades in the future can be challenging to comprehend. Planning for the future would allow you to deal with life’s ‘what ifs.' financial planning Newcastle shows that if significant expenses haven't been saved for when they arrive, we are in for a squeezed cash flow or an increased debt.
The first and biggest question will, do you want to send your child to a private school? The costs of private schools tend to differ depending on the area you live in and the institution you are sending your child to. In Sydney, the average cost of private schooling was $35,325, while the regional average was closer to $11,000 per year (Hare, 2022).
Many parents like to buy their kids their first car. Buying your child’s first car seems like some sought rite of passage. You'll find yourself with various options for getting your child’s first, such as Would it be an old banger or something with more modern safety features and a corresponding price tag? Would you give them your old car and buy yourself a new one?
Do you want to set your child up for their future once they’re an adult? The HECS-HELP scheme can fund university tuition, but that doesn't cover textbooks, housing, and other costs. Is it wise to set up a college fund to help with a university education so that you can focus on being debt-free and saving for retirement by then?
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