In today’s time, it is of utmost importance to secure the future of your child. The sooner you start the financial planning, the better. If you are wondering how to start planning or what parameters to consider while planning, here are some valuable tips to help you get started.
1. Start Investing As Early As Possible
Let’s be practical, education is getting costlier every year and by the time your child reaches college, the fees would have skyrocketed. So, don’t wait for your child to complete primary education or reach a certain age to start investing for them. Instead, start investing right after your child’s birth. Explore different avenues of investment that promise high returns in the future and start investing in them for your kid’s future.
2. Invest As Per Goals
Start investing by keeping the short-term and long-term goals of your child in mind. School admission fees, various activities fee, trips, and so on can be considered as short-term goals. While, college admission fees, abroad education, and other miscellaneous expenses can be counted as long-term goals. So, invest as per the goals, keeping inflation in mind. Cover each plan separately to safeguard important goals.
3. Invest in Health and Term Insurance Covering Your Child
You can not secure your child’s future unless your child is protected under a health and life insurance plan. Make sure to select a premium waiver plan to ensure financial support to your loved one in case of unfortunate events. And if you and your partner have not written your Will yet, now is the time. It is an excellent way to pool your properties or assets and know their market value to make sure its benefits reach your child.
4. Clear Your Debts
One of the major problems with loans is that they restrict your family and their needs. Your child might suffer emotionally if you can’t pay for their necessities. Moreover, you will be hand-tied to make any sort of investment for your kids. So, clear those credit card bills, car payments, and other debts as early as possible to build a secure future for your child. Talk with your lender about various repayment options to clear your debts.
5. Teach Your Child About Money Management
You don’t have to go into all detail and explain the nitty-gritty of the various plans and all. All you have to do is to explain your child the importance of savings. Get them piggy bank, ask them to deposit some money every day, and check the savings at the end of the month. You can also teach your child to read the price tags before purchasing to decide whether it is a want or a need and whether is it worth it. You can start with these basic money management lessons from the formative years of your child.
It might seem difficult but with proper financial planning, you can secure your kid’s future. So, follow these tips and start investing now.
You can also read 5 Ways to Teach Kids About The Importance of Money