Invest in Child’s Future
A parent can do anything for their children to give them the best when it comes to their education, marriage, etc. and thus, savings becomes a priority for every parent once they enter the path of parenthood. Every parent tries and wants that their child gets the best education and goes to the best school or a financial institution without any financial hurdle. To make this possible, it becomes very significant for parents to invest in the best options available in the market to meet their education needs and secure their child’s future.
There are a few steps that can be taken to ensure a secure future by looking at the requirements that best suit you:
1) To know the amount required – The first step to choosing a suitable child plan is to calculate the amount that is needed in the future. This amount calculated can be an approximate number to be able to estimate the future value of the child’s education costs, instead of present values. Make sure you take inflation in the picture or the planning might not work well.
2) Planning and Implementation – Once the target amount is calculated the next step is to plan and implement and decide as to how much monthly investment can attain the desired savings in the future.
3) Understand the options available – Once the target is known and monthly savings needed is calculated it is important to assess the options of a good child plan. A child plan is an insurance plus investment plan which will not only secure the child’s future financially but also protect in case of an unfortunate demise.
4) Premium Waiver Benefit – If there is any unfortunate demise of the parent (insured), then many insurance companies offer to waive off the premium. It helps in continuing the policy without any pressure on the family. Once the insurance policy is mature, the child will get the full benefit of the policy. A parent should always opt for this option when buying the policy.
5) Partial Waiver – It is important to choose a partial waiver as emergencies can arise at any point of time. This provision of partial withdrawal will help in withdrawing from the child plan to meet any unforeseen expenses.
6) Terms and conditions to be read carefully – It is vital to give extra attention while reading the terms and conditions of the policy in order to avoid any confusion the time of maturity or premature closure.
7) Utmost care to be taken while choosing an appointee – It is important to choose a trusted representative on whom the insured can rely on. As death o can come anytime and it is an inevitable truth of life.
Seven best options that are available to secure child’s future are –
1) Sukanya Samriddhi Scheme –It is an initiative taken by the government to encourage saving girl child. This plan can be started from the time of the birth till the girl is 10yrs old. Minimum of Rs1000 and maximum of Rs 150000 can be invested. Deposits can be made for 14yrs and maturity period of the account would be 21yrs from the date of opening the account.
2) Long-Term Investment in Gold – It is always prudent to evade physical investments in gold to reduce the risk of storage and the cost involved in handling the physical gold.
3) Protect future goals by taking a risk cover – it is advisable to take a risk cover to avoid any impact of finances on the dependents.
4) Equity Mutual Funds –These funds have a history of generating about 12-15% returns per annum.
5) PPF – The tenure and the maturity period of this product is 15yrs which is very apt for child’s investment in case of education or marriage.
6) For short term needs consider a debt instrument – There are a number of recurring needs in short term like uniform expenses, school fees, etc.
7) It is also important to invest in child’s skill sets like arts, sports which may reap real benefits for the child in the future.
Here you read the best option to invest in child future. All can be the best option for your child career but here you need to decide which could be the more beneficial and flexible.