As parents we love our children. We give them the best of everything that we can. Even at the risk of spoiling them silly. There is a desire to give the child the best that you can afford. Be it clothes, toys or education. Yet not many parents plan wisely for the financial future of their child.
You are alive and well today, and able to earn money regularly to meet the needs of your children. God forbid if something was to happen to you, what would be the state of your children? Not only will they be devastated that their parent is no more, but they would suffer severe financial hardships as well.
There is no guarantee of life. All of us feel immune to diseases for at least a couple of decades more in our thirties. What we don’t cater for is the unexpected. A healthy 30 year old can be dead in a car accident on the way to work. Don’t think it will happen to you? Why take a chance?
Secure your Child’s Future today!
Here’s a list of things that you can do. Do them all or pick a combination of what works best for you.
Get Life Insurance
While most of us have some sort of group policy at work, it is not enough for the child. It will help in the immediate transition though. So get a separate life insurance policy for your self. This should be payable as a monthly income to the family to help on a regular basis. There are options of paying the premium on a quarterly, annual or monthly basis.
Get Education Policies
Your child is going to need money at various stages in his or her education. At high school, graduation, and post graduation levels. Have separate policies that mature in the specific time frame that you will need the cash. These should be lump sum payments available for admissions and donations. The premiums can be paid monthly, quarterly or annually.
Buying gold was considered the wisest investment in the olden days. Even today it is a sound investment. While investing in physical gold may not be the greatest idea, considering how easily it can be robbed, get into gold funds. These are traded like regular mutual funds on the stock market. A great investment opportunity. Invest as much as you like when you have extra funds around.
Get Mutual Funds
The equity market always gives great returns in the long run. There are crashes when the market suffers, but if you invest in a SIP or Systematic Investment Policy, you will be immune to the daily ups and downs of the stock market. To safe guard your investments even more, invest in mutual funds that have performed well over the last five years and tend to invest in blue chip companies. Invest a fixed amount every month.
Get a PPF
A Public Provident Fund in the name of the child is a great idea to save money. You need to invest a bare minimum on a yearly basis, and when you have extra money you can park it there. The temptation to spend must be avoided at all costs. Even if it is something luxurious for the child. Earmark it as education money. Invest a fixed amount every year.
These are a few basic steps that you can take to ensure that your child always has a financially secure future.