I’m 65 with two young children: How can I provide for when I’m gone, but also make them good with money?

I’m 65, and I have two children aged eight and five. I’m in a financially stable position, and will be retiring in a few years’ time.

However, I’m aware that given my age I might not be around as long as most parents are for their kids.

I want to give my children the best life that I can and set them up for when I am no longer there. 

I plan to leave them an inheritance, but perhaps more importantly I want to teach them to make good financial decisions on their own.

What things should I consider doing? T.M, via email

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Safety net: This reader is 65 with two small children, and wants to ensure they are financially secure in later life – but also teach them how to manage their money

Harvey Dorset, of This is Money, replies: As an older father, you acknowledge that you might have less time with your children than younger parents. 

But you are also far more financially secure, given that you have had the time to build up savings, assets and investments, as well as life experience.

This means that you should be able to make arrangements to both ensure your two children receive as much of your wealth as possible, but are also able to make good financial decisions once they take control of it.

This is Money spoke to two financial advisers to find out what you need to do.

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Zoe Brett says it is never too early to start educating your children on money

Zoe Brett, financial planner at EQ Investors, replies:  Ensuring financial security for your children requires three fundamental building blocks: building wealth, educating and protecting.

Building wealth

Individuals can invest up to £9,000 per year into a Junior Isa (Jisa) and £2,880 per year into a Junior self-invested personal pension (Jsipp).

A Junior Isa can be held in cash and earn interest, or the money can be invested in the stock market and hopefully grow in value over time. 

Given the money would be a long-term holding, investing is likely a better option as historically investing has outperformed cash over the long term.

Jisas are free of income and capital gains tax, both whist invested and upon withdrawal. Jsipps grow free of taxes, but are subject to income tax on the bulk of the withdrawal at retirement.

Another tax advantage of Jsipps is tax relief. The Government will give tax relief at basic rate tax rates for Jsipp contributions, so your £2,880 investment benefits from a boost of £720 making the overall investment £3,600. This makes Jisas and Jsipps highly tax-efficient investments for your children.

For the Jisa, at age 18, your children can either take the money or convert the Jisa into an adult Isa for continued investment. The Jsipp will be subject to minimum pension age legislation which is currently age 55 (57 from April 2028).

Starting to build assets for your children early is key. Even small amounts will soon add up and help them on their financial journey whether that be university costs, their first home, retirement or another big life expenditure.

Education

It’s never too early to start educating your children on money. 

There are some great books you can read with them and I’ve listed a couple of my favourites below, not to mention a wealth of resources online. 

I also like the idea of putting things into practice. Some great ways to do this are:

• Let your children earn their pocket money by doing chores.
• Let them help with budgeting and make small spending decisions, for example with the weekly food shop.
• Talk to them about money, explain what you’re doing when paying bills, show them savings and investment accounts to demonstrate the power of compounding and investing.
• Teach them the benefits of delayed gratification by letting them see their own savings account grow, and see that all the money they haven’t had in toys is building into something bigger for them later down the line. This is a great way to instil good habits early on that they will carry through into their adult lives.

The money books I’d recommend are:

• Age 3-7 The Four Money Bears by Mac Gardener or Money Plan by Monica Eaton

• Age 8-12 Finance 101 for Kids by Walter Andal

• Age 13-18 The Teen Investor by Emmanuel Modu and Andrea Walker or I Want More Pizza by Steve Burkolder

Protection

Finally, maintaining a good family home once you’ve passed away is paramount to allowing your children to grow up into well-adjusted adults. 

Protection such as life cover can ensure that should the worst happen when they are still young, the family home can be maintained financially. This means the family’s focus can remain on building a good life rather than struggling day-to-day.

A good rule of thumb is to work out the family’s annual expenditure and times that by the number of years until your youngest child reaches the age of 23, adding in any outstanding debts.

This should give you a starting figure for the amount of life cover you require to ensure financial stability on your passing. 

Choose a life cover that increases each year by inflation to ensure the lump sum paid on death retains its purchasing power.

Rob Bell, Founder & Chartered Financial Planner at Finova Money, replies: When you have young children, your priorities shift. 

You want to give them the best start possible, while also making sure they’ll be looked after if you are not around.

This is about more than money – it’s about security, values, and time together. Here are some key areas I would think about.

1. Make your will a priority 

A will isn’t just about dividing assets. For you, the most important part is setting out who would look after your children if you were no longer here. 

Having guardianship clearly documented avoids uncertainty and gives peace of mind.

It also means your children can have a better relationship with them. Alongside this, you can decide how assets are held for them, and when they should inherit.

2. Protect their financial future 

Life insurance in the form of family income benefit could be a potential option, though this can be costly if you are older and in poor health. 

Rob Bell says pensions can be a tax-efficient legacy

Instead of a lump sum, this pays an annual income to your children’s guardians, replacing what you would have provided. It can ensure continuity for education, activities, and everyday living costs.

3. Consider trusts 

Trusts can be a flexible way to plan ahead and hold life insurance or workplace benefits. They allow money to be managed on behalf of your children until they are older and reduce the risk of large sums passing to them before they are ready. They can also protect against unnecessary inheritance tax.

4. Don’t forget pensions 

Pensions can be a tax-efficient legacy. As well as making sure the death benefits are suitable, make sure your nominated beneficiaries are up to date. 

It’s a simple step but often overlooked, and it ensures money can pass directly to your children, or a trust for their benefit.

5. Build a nest egg for them 

Consider setting up Junior Isas for each child. Even modest monthly contributions can grow significantly over 10–15 years. At 18, they’ll have a pot they can use towards education, a home deposit, or simply to give them more choice.

6. Beyond money – what really lasts 

While financial planning is vital, the values and experiences you pass on are just as important. Think about how you spend your time together, trips, family traditions, and simple routines often mean more than large inheritances.

Writing letters for milestone birthdays, recording stories, or building a family photo book can create a legacy they’ll treasure forever.

7. Look after yourself too

One of the most valuable gifts you can give your children is time. By focusing on your own health and wellbeing, you increase the chances of more quality years with them. 

Investing in fitness, diet, and regular health checks is as much a part of this plan as any financial product. 

Putting all of this in place doesn’t need to happen overnight. Start with the essentials, wills, insurance, and pensions, then build on that with savings and personal touches.

The combination of financial security, clear guardianship, and the memories you create together will give your children a foundation that lasts long beyond money.