Generational Planning

Written by Mark Salter

As summer draws to a close, many families find themselves at an important milestone. Some children or grandchildren are preparing to start university, while others are graduating and taking steps into their future careers. It's an exciting time, but it can also bring new financial pressures and opportunities.

For many parents and grandparents, there is a strong desire to help. Whether it's contributing towards university costs, helping with a deposit for a first home, or providing support as children establish their careers, financial assistance can make a significant difference.

However, there is an important principle worth remembering. Much like the advice given on an aeroplane, you should secure your own oxygen mask before helping others. In financial terms, this means ensuring your own lifestyle and future needs remain on track before making significant gifts or financial commitments.

Good planning can help answer an important question: How much can I afford to give without affecting my own future? By understanding your long-term income needs and financial goals, it is possible to support children and grandchildren with confidence, knowing that your own security remains intact.

The greatest benefits often come from thinking beyond a one-off gift. Helping younger family members invest, save for a property, or build financial resilience can create opportunities that last for decades. At the same time, thoughtful gifting strategies can play a valuable role in reducing future inheritance tax liabilities.

This is where generational planning comes into its own. Rather than viewing wealth as something to be passed on at the end of life, it allows families to use their resources more intentionally, providing support when it can have the greatest impact. With careful planning and open conversations, families can help the next generation take off while ensuring their own financial future remains firmly on track.