Secure your children future with these 5 financial tips : One of the greatest sorrows that many Indian parents are doing is getting pregnant before taking their finances in order. Many parents believe that because they have a 6-numeric work and a nice home and a car, they can afford to have a baby. But nothing really prepares you for the shock you get when you’re really pregnant! From prenatal tests and supplements, to maternity clothes and nutrition aids, your baby begins to expel your bank account even before you keep him in your arms! Therefore, it is important to understand the costs associated with lifting a child and design accordingly – so you should never say no to your child.
Some of the common costs that are repetitive and lasting include necessary needs such as food, clothing and housing. entertainment, transportation, medical expenses etc. On the other hand, certain expenses – such as education, marriage, etc. – are enormous, but they only occur for a finite period of time. Either way, you have to appreciate three things while making financial plans – how much money will you need, at what time or at what age and for how long.
5 tips to financially secure your child’s future
Considering all of the above, follow some general tips to plan your child’s future in such a way that you can cover all your needs and allow them to dream.
1. Consider investing in child insurance policies
Look for a policy that gives you enough flexibility without locking up your money for most of your life. Money is not useful if you can not spend it. An ideal policy for children will ensure that you have money to spend in time, and will also allow you to withdraw money in case of unfortunate events. Finally, a policy that will protect your child even after the cessation is definitely a great asset. Consider the children’s plans offered by IDBI Federal Life Insurance. They have all the above benefits covered completely!
2. Think about getting life insurance for yourself
While a child insurance plan will cover your child’s financial needs, life insurance for yourself is also something that you have to look at sincerely. Not only will you help to support your family in your absence but will ensure that not all your funds are stuck in a single policy and that you will not only have few outlets in terms of withdrawal.
3. SIPs are a great way to have a lump sum on demand
The beauty of a SIP is that it gives you a better return on your investment. You can also stop a SIP at any time, making it a flexible investment. It’s the best way to make money off for luxuries – an expensive birthday gift, holiday or upgrade for your child’s room!
4. Create a Fixed Deposit
While SIPs are more lucrative, they are subject to market risks. A stable deposit can be a more traditional form of investment, but it will give you safe returns. The best way to move forward is to have at least two fixed deposits. choose the terms in such a way that the maturity of the FD coincides with an important landmark. For example, one could mature at the time your child finishes school, another could mature around the time he graduates. Maybe a third will mature in time to throw a big marriage or buy a house or a car.
5. Create a bank account for your child
This may not seem like a big deal at the moment, but it’s a great way to teach banking to your child. Things like building a credit history, understanding finances, will come easier to your child. Instead of giving your child cash as a “pocket money”, you can deposit it into your bank account. In this way, they can learn to charge their expenses, save and plan where and how they spend their money. You can also track how much money you spend on your child that way in order to better manage the house’s finances.
Some of the best decisions we make in life are well thought out, taking into account all possible outcomes, and achieved with a calm and rational mind. The financial planning of a child is the same. Be sure to consult a good financial advisor and take the right steps to secure your child’s future today!