Save Money for Child in India

Methods to Save Money for Child

1. Evaluate your Children's Future Needs

   You should consider and evaluate the needs of your children before preparing any financial plan. After evaluating this, start chasing those needs-based objectives. There can be some expenses which may arise in future so you should forecast them as well.

2. Start Early to Save More and Invest Less

   For instance, Mr. Arora has a son who is 3 years old. His son will do his graduation after 15 years. In today's terms, the cost of graduation is Rs 5 lakhs. Take inflation rate to be 10% per annum. So, after 15 years, Mr. Arora will need Rs 20.88 lakhs for his son's graduation. If he starts investing now then he needs to invest Rs 4,180 per month but if he delays the investment and starts investing after over 5 years from now then he needs to invest Rs 9,079 i.e. almost double. Hence you can easily observe the benefit of investing earlier to achieve the same amount of money at the correct time. 

   Investment

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   Secure your child’s future with or without you

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   ₹10,000/Month

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   ₹1 Crore^*

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3. Saving Alone is not Sufficient

   If you want to earn high returns than saving money in your savings bank account is not the option. You should consider various investment options available in the market and choose the best suited to make your portfolio progress towards the financial goals you have set.

   Many companies have launched child plans These investment products take care of most of the expenses along with an insurance cover. It is important to understand these products precisely before hawking for them blindly. Don't get carried away by the names of financial products. Instead, before making any decision, evaluate the characteristics & viability of these products. 

4. Take Help From an Expert Financial Planner

   Apart from the child's future, there are other priorities as well like retirement, medical expenses, housing rent, etc. You should never dip into the funds save for these priorities to invest for your child. Planning better would be sensible and for that you can take help from an expert financial planner. 

   By following these simple but effective methods, you can easily make the future of your children secure.