Parenting is one of the most beautiful experiences in one’s lifetime, where we are entrusted with the crucial responsibility of bringing up the NextGen kids. Striving to ensure that the child grows up to be a responsible and proud citizen, and that his/her future is safe and secured. The most challenging responsibility of parents is to equip the child with the best possible education. The job does not end here – we need to plan finances for their child’s
medical needs as well as marriage expenses.
Currently, as a parent of a toddler, it might sound like it’s not a pressing need of the hour. But, the truth is otherwise. Is it complex and challenging? Well, it is actually not! As a mother of a 2-year old daughter, I want to INVEST in a gift that my child will cherish for a lifetime. While parents save differently – some in gold, some in stocks, some in fixed deposits, this is my current portfolio for my young turk –
- Fixed Deposit – Needs no explanation. Does it?
- Post Office Deposit – Child Plan when she was just 3 months old. You can deposit upto 2Lacs a year in installments or a single term payment which can be liquidated once she turns 18years.
- 1 Gold Coin a year
- Children’s Savings Protection Insurance Plan
While there are several ways to save and the combination of which gives you a holistic approach to smart savings. This is how I have devised a well-thought financial investment plan to meet the expenses at every stage of my child’s development. These financial tools would go a long way to ensure the financial security of your child and ease out all the financial worries which could have otherwise hampered her progress and happiness.
While the first 3 are fairly familiar, I’d like to throw some light on the IDBI Life Insurance plan for children:
The highlights of this plan are:
- The plan gives you guaranteed annual payouts either in the last 3 or 5 years of policy.
- In case of an unfortunate event, the death sum assured will take care of your child’s financial needs.
- In case of an unfortunate death of the insured, guaranteed annual payouts and bonuses will be paid on their respective due dates.
While I chose IDBI, you can choose Child Insurance plans from other leading Financial Institutions whom you trust the most. Be cognizant of the fees, benefits & exit terms if any. It is a long-term commitment, you do not want to find yourself in muddy waters after 5 years.
You may want your child to become a Doctor or an Engineer, but your #BabyGotPlans. Young parents should take cognizance that the education system is highly dynamic and so are job roles & opportunities. With more students aspiring to study abroad, with appropriate planning one can accomplish children’s as well as their own dreams as well.
Kids have their own dreams. And it is, but right, on our part to give them all the facilities and freedom to try different fields of opportunities before settling for the one that they enjoy the best. You can sail through smoothly only if we plan our investments appropriately. Advance financial planning for kids would definitely ensure child’s security, without the parents having to forego their dreams and aspirations. So, when are you going to start investing for your child’s future?
A doting mom to an angel, Social Media Specialist & Professional Blogger. She loves to share her thoughts with other parents in the same turbulent boat. She absolutely loves & adores her family & is learning to strike a good work-life balance. When she is not writing, cooking or busy taking care of her toddler, she probably is dancing to some good desi music!