Being a parent of a newborn child adds up to the responsibilities both general as well as financial. Even before the child is born, parents start managing savings from all directions in the form of fixed assets, mutual funds, general insurance, and health benefits from employers. However, expenses rise immediately without notice and tackling this instant increase of expenses are a mammoth task if there is no strategic planning devised beforehand.Read more
As parents of a newborn child are usually thrilled to have a new addition to their family, they end up purchasing new items for the child’s requirements whose shelf life would not be more than few days or weeks as children grow up very fast. These small elements add up to a volume of expenses unexpectedly and are difficult to keep a track as well. Spending increase and savings reduce eventually, leading to breaking of other savings in the form of bonds to meet the day-to-day requirements.
Therefore, to start with, parents must ensure that they are covered well in terms of life insurance so that in case of an emergency, the current expenses are being met smoothly and additional expenses are well covered.
Here are 7 important child investment options that a new parent can consider:
It is highly recommended to read the policy terms and conditions very carefully in your offer document before finalizing on anything as you may want to look into your payment methods, options, any penalties in case of slippage of payments, recurring interests, and benefits with market rate policies of your saving plans. It will ensure a proper strategic planning of your source of funds, payments and their return on investments (ROIs) for your child’s future.
The joy of parenthood also comes with a bag of responsibilities towards the newborn member of the family. The commencement of each phase of the baby’s growth increases these responsibilities by multiple times. Therefore, new parents must do their part by refraining from reckless spending, making a list of the financial responsibilities and goals and making proper investments and savings accordingly.