65-year-old parent with young children outlines plan to provide for them after death and teach money management

An older father, 65, with two young children is outlining a plan to provide for his family after he is gone while also teaching his kids how to handle money. With retirement on the horizon, he acknowledges he may not have as many years with his children as younger parents do, but his current financial position allows him to arrange both a practical inheritance and hands-on financial education. Financial planners say there are several building blocks that can help balance wealth transfer, education, and protection for a family in this situation.

Zoe Brett, a financial planner at EQ Investors, emphasizes three fundamental building blocks: building wealth, educating, and protecting. For building wealth, she points to Junior ISAs (JISAs) and Junior Self-Invested Personal Pensions (JsIPPs) as tax-efficient ways to start early. Individuals can invest up to £9,000 per year into a JISA and £2,880 per year into a JsIPP. A JISA can be held in cash or invested in the stock market, and the money grows tax-free while invested and upon withdrawal. JsIPPs grow free of taxes but are subject to income tax on withdrawals at retirement. An additional tax advantage of JsIPPs is a government tax relief on contributions, so a £2,880 investment benefits from a boost of £720, making the effective invested amount £3,600. At age 18, a child can either take the money or convert the JISA into an adult ISA for continued investment. JsIPP withdrawals have a minimum age rule (currently 55, rising to 57 from April 2028). Starting to build assets for children early is key, and even modest monthly contributions can add up over 10–15 years to help with future needs such as education or a first home.

On the education front, Brett argues it’s never too early to teach money concepts. Practical steps include letting children earn pocket money through chores, involving them in budgeting and small shopping decisions, and talking openly about bills, savings, and investments to demonstrate the power of compounding and delayed gratification. Recommended reading for different ages includes The Four Money Bears by Mac Gardener and Money Plan by Monica Eaton for ages 3–7; Finance 101 for Kids by Walter Andal for ages 8–12; and The Teen Investor by Emmanuel Modu and Andrea Walker or I Want More Pizza by Steve Burkolder for ages 13–18. These choices aim to translate abstract ideas into real-world habits that can persist into adulthood.

Protection becomes crucial when young children are involved. A life-insurance strategy can help maintain the family home and lifestyle should the worst happen. A rule of thumb is to calculate the family's annual expenditure, multiply by the number of years until the youngest child reaches 23, and add any outstanding debts to determine a starting point for life cover. It’s also prudent to choose a policy that increases with inflation so the lump sum retains purchasing power over time.

Pensions can serve as a tax-efficient legacy. In addition to ensuring that death benefits are aligned with beneficiaries, the policyholder should keep beneficiary nominations up to date so money can pass directly to children or into a trust for their benefit. This is complementary to other vehicles like JISAs and JsIPPs that are designed to build a long-term asset base for children.

Rob Bell, Founder & Chartered Financial Planner at Finova Money, notes that when there are young children, priorities shift from maximizing present wealth to safeguarding their future and guiding values. Bell highlights several practical steps: make the will a priority to designate guardians and specify how assets are held for children; consider life insurance or a form of ongoing income for guardians to replace the parent’s support; evaluate whether a trust could hold life insurance or benefits to protect against mismanagement or premature access; ensure pensions are set up with current beneficiaries; set up Junior ISAs to grow a child’s long-term pot; and remember that what lasts long after money is the values and experiences shared as a family.

Bell also stresses building a dedicated nest egg for children through consistent contributions to Junior ISAs and JsIPPs, and he suggests thinking beyond money about what you pass down—stories, routines, and time together—to create a lasting legacy. He advises starting with the essentials—wills, insurance, and pensions—and then layering in savings and legacy-planning tools as you become more comfortable with the options.

In sum, the plan described by advisers centers on a balanced mix of protection, wealth-building tools that benefit children over the long term, and deliberate attention to education and family values. Although the specifics will vary by family, the core ideas—clear guardianship, appropriate life cover, early and steady contributions to tax-efficient accounts for children, and hands-on financial education—provide a practical framework for parents who want both to shield their children financially and empower them to make sound money decisions in adulthood.

As this approach unfolds, the emphasis remains on action rather than speculation: establish essential protections and guardianships, ensure the children’s financial accounts are set up and funded, and gradually instill money principles that can endure long after the parent’s lifetime. These steps align with the guidance of financial planners who encourage beginning with the basics and expanding the plan to include educational and value-based components that help children grow into financially capable adults.