You, or someone important to you is:

2-10 years of age


No matter what stage of life you are at, there will be certain circumstances that you will wish to protect against, and others for which you will need to make provision. There are always so many options, and the intention here is to help remind you to ensure you get the very best for you . . . and yours.


Take another look at your household contents insurance. A small fortune will have been spent on clothing, equipment and toys for your child and so you are probably under insured. It costs very little to add an extra £1,000 on to your insurance - perhaps only £5 per year.

You should also consider buying wider cover that includes accidental damage. Toddlers get great delight out of feeding toilet bowls and electronic equipment anything they can lay their hands on such as remote controls, toys, money, food and drink with predictable consequences.

This is where Monty came into his own. In just a two week period he managed to melt an Easter egg on a brand new sofa, jam a crayon into the slot of a gaming machine and break his Dad's new iPad beyond repair. Sadly, Monty's parents did not have cover for accidental damage, turning what promised to be an enjoyable break, into an expensive nightmare.

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Duane and Marie used the money to pay for a regular savings scheme. They chose an Investment Trust for their daughter's future which is a higher risk investment. This type of saving scheme does not have a fixed life span like an old-fashioned endowment policy but is completely open ended. This means you will be able to tap into the account on your child's behalf to help with university costs, or better still, keep up the investments on your child's behalf beyond full time education to help them with a deposit for a house.

If you invest the same amount every month you should get £2.17 back for every £1 that you have set aside over 18 years. This would only be £1.47 with an excellent cash deposit and so the benefit of investing rather than saving is clear.


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Ann wanted to go back to work but found that she could not afford to do so as a single parent. This eventually came out during one of the interviews she was obliged to attend and it was her new employer that suggested a solution to her. The employer suggested paying her less wages than she was expecting but also paying the nursery fees for her child in full.

Payments made in this way do not attract tax or National Insurance and so the cost to Ann in terms of the deductions from her salary was much less. Another benefit was that the reduced rate of pay meant Ann was still entitled to top up payments from the state in the form of tax credits and other state benefits.


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Ask your employer for a pay cut if you would like to use the child nursery. Employers are able to pay fees to registered nurseries and those payments do not constitute a benefit in kind.

This means there is no tax or any National Insurance due upon those payments and so for every £1,000 that they pay to a registered nursery on your behalf your take home pay should reduce by only £680 if you are a basic rate taxpayer. For those of you paying income tax at the higher rate the reduction is just £580.

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If someone has been paying into a pension for you in the early years of life they may be willing to divert that spare part of their income to help with school fees or other education costs from infant school onwards.

You won't appreciate the benefits of this until you are a parent or a grandparent yourself. Quite apart from the delight that they will feel from giving this gift to you it also helps to reduce their overall Inheritance Tax liability if these regular gifts are made to you out of spare income.

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