Christmas is fast approaching and I am sure by now, children around the area would have already drawn up a present list and either e-mailed or texted it to Santa. When I was younger I hoped for a Dandy annual, a new uniform for my Action Man and possibly a tangerine in my stocking. How things have changed! Now children want expensive gadgets like a DSI, PSP or a WII!

Recession or not, parents and increasingly grandparents these days face an unrelenting task of providing new clothes, books and the essentials of modern life. This results in children being dependent for longer than at any point in time on their immediate family. Socially this binds us, which is a positive thing, financially it stretches us.

Johnny Mathis once topped the charts over Christmas with ‘When a Child is Born’. Little did he know some 34 years later it would be estimated that when a child is born it costs over £200,000 on average to bring it up to the age of 21. In the light of changes to educational funding, reductions in child benefit and the scrapping of the Child Trust Funds the burden on parents will inevitably increase.

Like with a good Christmas dinner, preparation is all. This preparation may mean earmarking a bank account, exploring return-to-work options following baby’s arrival, or taking out a long term savings plan. It could also mean using an inheritance wisely or grandparents establishing a trust fund. Preparing for all the turmoil and fun ahead could possibly make our lives a lot easier emotionally in the years to come.

Please call me at Kenley Financial for further advice.