Money Counts!
Finances are important in any family relationship, and as a grandparent you may find that things are a little strained financially, and that due to lack of finances you are not able to do all that you would like to do with your grandchildren. As a grandparent you may be drawing a pension, and if this is your only income finances can be very tight. However, money is important as a grandparent, as most grandparents want to be able to afford to do things and spend quality time with the grandchildren. On top of this most grandparents want to be able to contribute financially towards their grandchild’s future.
- Plan for your grandchild’s future: You should start thinking about the financial issues that may arise in terms of your grandchild’s future as early as possible, as this will allow you to determine the best course of action to allow you to contribute financially. You could look at setting up some sort of trust for the future of your grandchild, and you can make the most of interest by starting this trust fun early on in your grandchild’s life.
- You may be a grandparent that is the main carer for the child, and in this cases finances can be even more strained because you will have the extra costs that a parent would normally deal with. However, you may be able to get special financial assistance from the government in cases such as these, so make sure that you find out more about financial assistance for grandparents that are the main carers for their grandchild or grandchildren.
- Your will: As we get older we all have to start thinking about things such as drawing up a will. You may already have a will drawn up. However, with the arrival of a grandchild you may want to look at changing your will to ensure that your grandchild is provided for. Although many grandparents leave the bulk of their estate to sons and daughters, assuming that the grandchild will be given their share from the parent, you never know what sort of relationship your son/daughter and your grandchild will have in the future, and by including your grandchild in the will you can ensure that he or she will get their share of your estate no matter what happens in the future.
- Look at insurance policies: As with your will, you may want to ensure that your insurance policies include your grandchild so that he or she can still be helped financially even if something happens to you.