Five ways to ensure your family’s financial security
People often realise they need to take care of their family’s financial security if they’re no longer there, but it’s equally important to take care of their financial security when you are there.
Here are five ways you can ensure your family’s financial security:
1. Plan your estate
Planning your estate and making a will can ensure your money goes to support or enrich the people you choose.
If your partner is not good with money, you can put some protections in your will, like forming a trust or appointing a guardian.
You could also consider appointing appropriate guardians to take care of your finances as you grow older.
2. Pay off your debts
There are many advantages to not having debt like credit cards, overdrafts, or personal loans.
For example:
If you have a temporary setback, credit cards can tide you over.
It makes it easier to save for big-ticket items like buying your child a car or paying for their studies.
You should be able to retire when you choose to, rather than being forced to work longer to repay your debts.
You’ll be able to preserve your wealth for future generations.
3. Have an emergency fund
An emergency fund is there to tide you over when something goes wrong. Although you may qualify for government grants or pensions, it may not be enough to cover all your expenses.
Ideally, an emergency fund should be sufficient to cover your monthly commitments for at least three months. That way, you’ll be better able to cope financially if you lose your job, you fall ill or you’re in an accident.
An emergency fund can also give you opportunities like being able to stop working temporarily to take care of a family member.
4. Take out insurance
You can take out insurance for almost anything, like your belongings, home, life, and income.
The more insurance you have, the more secure your family’s financial future will be because you’ll be able to get back on your feet, no matter what happens.
5. Teach your children about money
One of the best ways to teach your children about money is to lead by example. It’s likely your children will learn more by watching what you do than by listening to your advice.
One way you can teach your children to manage money is to use FLX. You can transfer your child’s pocket money from your Flexischools account to your child’s FLX account. Your child can set a savings goal and allocate some of their money to that goal. Once the goal is reached, they can spend the money with their prepaid FLX card. Every time your child makes a purchase, you will receive a real-time spend notification which will give you insights into their behaviour.
You can help your children learn to manage money from any age with FLX. You and your children can track their spending on the prepaid card, set savings goals and transfer money to their savings goals. You can sign up to FLX here.
This is general advice. Read the PDSs & TMDs at www.flexischools.com.au/legal before deciding if FLX is right for you. The FLX Services & Flexischools are provided by InLoop Pty Ltd ABN 27 114 508 771 AFSL 471558 (trading as Flexischools). The FLX Prepaid Mastercard is issued by EML Payment Solutions Limited ABN 30 131 436 532 AFSL 404131 pursuant to license by Mastercard Asia/Pacific Pte. Ltd.