So your child is going to university....Have you had the 'finance' conversation?

Whether your child is preparing to go to university in a few weeks or thinking of going next year, Nick Kelly gives his take on preparing your child financially for their student years.

I can't quite believe that my daughter has already completed her first year at university.  

It doesn't seem that long ago she was shopping to go.  The list seemed endless.  Cutlery, bed sheets, new clothes etc.  But I found as important as all of these essentials was the chat about money, budgeting and how to survive university financially.

The step from living at home to having to pay bills, rent and grocery shopping can be huge.
Here is my 'important conversations' list to use a starting point over the summer and also tips to put them on the right financial footing for their student years.

Summer Budget 2015

As George Osborne revealed his 7th budget this week, our adviser Steve Ansell explores what this announcement could mean for our clients.

Tax and Personal Tax changes
The chancellor reported  that there would be no increase in VAT, national insurance or income tax.
The basic rate threshold is to increase to £11,000 next year and to £12,500 by 2020 (meaning no tax payable on the first £12,500 of earnings) and the 40% threshold is to rise to £43,000 from April 2016, a small step towards the £50,000 target indicated.  This will reduce the number of clients moving into higher rate tax.  It will benefit those taking income draw down from their pensions allowing an increase in income without a higher tax liability.
This also means that our working clients will have more disposable income.

Inflation - The risk in taking no risk

by Mike LeGassick, Independent Financial Adviser

Any discussion with a prospective investment client should always include a detailed chat about their attitude to investment risk. It should also include their personal capacity for loss and their expectation of return.
My role as an independent financial adviser is largely about managing client expectations; and providing that these things are discussed and accurately recorded, there should be no nasty surprises.
However, in over 20 years in this business there is one hugely important element that most people completely overlook and that is inflation.
It can have a devastating effect on people’s savings over time.  A couple of percent here and there can seem like no big deal let me warn you... disregard inflation at your peril!  It lurks there, quietly in the background but then it never stops.
In my opinion there's a very real risk in taking no risk.