Are you worried about how to manage money for your child’s future?
Children are the world to parents. As responsible parents, we always want to give the best for our kids- from sports to education and comfortable life. Every parent wants to ensure adequate financial assistance for all the significant milestones of their kids. Certainly, the rising inflation costs may make it very difficult to manage the various demands of changing lifestyles. With expenses rising high on every front, it is essential to plan well for your and your kids’ future. In today’s competitive era, a child’s education is one of the most significant cash outflows families need to plan for. Starting early to save and invest for your child’s future can give you optimum returns and build a considerable corpus to secure your child’s future. Fortunately, several child education plans and child investment plans are out there that can prove to be a bridge to future success. Let’s explore a few investment options –
Child Insurance - Child life insurance plans are invest-cum-insurance plans that offer life coverage and help build a corpus for your child. Such child insurance plans can help ensure that the financial needs of your kid are managed well, even in your absence. You can use a child education calculator to plan well for expenses needed for your kid’s education.
ULIP based child investment plans - Investing in Unit Linked Insurance Plans (ULIPs) is surely an intelligent way to secure your child’s future as it offers dual benefits. Besides offering satisfactory market-linked returns, ULIPs also make the future financially secured for your family by providing life coverage. In simple words, ULIPs play the role of insurance as well as an investment plan. Thus, investing in ULIPs can help you meet the immediate as well as future financial needs of your child.
Mutual Funds - This is one of the most popular investment options in India. Investing in equity mutual funds can be a smart option for your securing your child’s future.
Public Provident Fund (PPF) - This is another popular investment option to build a corpus for long-term goals. Choosing PPF, where the funds can be locked in for a period of 15 years, can give you good returns. PPF accounts can be opened via banks or Post offices. Moreover, the interest earned and the fund after maturity is eligible for tax exemption.
There are several other options such as gold saving, bank fixed deposits, SSA (Sukanya Samriddhi Account), etc. however, it is essential to think about options that will help cater to needs at different stages of life. Before deciding on the route, consider milestones, current as well as futuristic requirements that need to be taken care of. Starting early, choosing the right plan and disciplined saving will surely help promise your child a bright future.
