Financial products to consider when you have a baby

When you have a baby you might so excited or distracted with all the baby things to consider how the whole thing is going to be financed, to state it with a cool, cold financial hat on!

However the fact is that you will need to consider these matters and it is parents even part of being a responsible parent to think about the finances and how you can best give them a good and solid foundation in a financial sense.

This means that a range of financial products need to be considered, and in the main you will need to look at products that are focussed on the long term savings and investment side of things.

So for instance you might like to look into collective investments, structured saving products and bonds.

Bonds are simply where you agree to invest money for a set period knowing that the interest rate is guaranteed unlike normal savings where it will go up and down and fluctuate with interest rates, as such bonds are in a way a safer investment as you are protected against downfalls in interest rates, though admittedly you don't get the upside either if they were to go up.

Another area to seriously consider is the stock market. Historically over ten year periods the stock market has always done better than other financial products in terms of return on investment over the course of that period.

This means if you are saving for around five years or more the stock market statistically is going to be a good way of getting more money back.

In the short term there are blips to get over but if you leave the money locked away you need not worry about those as overall the general trend of stock markets over a ten year period is up by a nice amount, and the long term trend, then, is your friend, as they say.

Of course that said riskier investments are not for everyone which is why you should always meet with an expert for their advice and a suitable level of risk exposure to you in your financial planning portfolio before any decisions are taken.

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