Investing for your child's future

The birth of a child is a cause of joy for the whole family, especially for the parents. However along with this joy comes responsibility. For the joy, we have celebrations, but for responsibility we let things happen. When it came to a celebration, we sat down and planned, whom to call, where to call, what is our budget etc. But for the responsibility, we say we have time. Yes, you have the time, so utilize it. Plan for your child’s education, marriage and secure future. If you have planned well, not only your child’s future, but even your future would be smooth. So what do we need to do? First create a fund or an account and contribute to it, in such a way that there is not too much pressure on the family. Next plan for uncertainties i.e. in case something happens to the bread winner or to the house you stay in or to someone in the family. In such circumstances, your child’s future should not be jeopardized.

For the first part estimate the costs, inflation and expected returns after tax and start contributing to the fund. For the second part, you would need a good term policy, home insurance and a health insurance. With this most of your major risks would be taken care of.  So do not waste time, start early and see the power of compounding work for you, while creating a corpus and good insurance policies would ensure financial security in for your family and child’s future.