Have you saved enough for your child’s education?

A child brings the most precious happiness in individual’s life. It is obvious you too would prepare to offer them precious gifts from time-to-time in their walks of life. It can be anything from the first toy, when kid goes to school, camera or smartphone while growing up / bike or guitar in their college days. But for all this, you need to build sufficient saving for child without which it is not possible especially in the days of ever increasing inflation costs, luxurious lifestyle pattern and competitive environment.

Nowadays, with growing competition, striving for achievement within no time children grow up. Before you wonder schooling fees are sorted out you have to prepare for their extracurricular activities or college fees or may be higher studies abroad. This is sufficient to prove that you need to have adequate funds to meet their requirements.

Most of time parents stay confused or tensed to decide and choose on the best investment tools available in the market which would offer them with a desired results for their child benefits. However, saving for child can be rather easy than you think.  Today, markets are pooled with various investment options such as child insurance plans, gold, mutual funds, bonds, securities or equity stocks. All you need is to sit and discuss your child goals and speak to financial advisor, and start as early as possible and keep monitoring your funds on time-to-time.

Although parents stay worried about their child dreams and the significant costs attached to it, the real challenge lies in how well they plan for the child and executes the plan. 

Here, are few tips to help you get started:

Start Early

If you start investing when your child is born you get to grow money in the form of compounding principle. Secondly, for long term plans you can anytime experiment with funds to create the desired wealth and then push the earning to debt funds to take benefits at fixed intervals. Never move with aggressive approach due to emotional factor. Start cautiously, understand markets well and then go for the right investment.

Talk to Child

Always take an idea on what your child aspires to become in life. This way it will help you channelize your funds in the right move. Also, teach them the value of money and savings as it will benefit them in future. Having them involved in saving for child plans will help them learn valuable money management skills that will have a major impact on their financial futures.

Consistent Investment & Review

Select a fixed amount and invest it on regular basis. Set an ECS tie-up with banks so that the installments are deducted on time. Every once or twice a year increase the deposited amount by a little bit each month and keep a review meet on your funds. Talk to financial planner if you’re saving for child and plans are not yielding sufficient funds.

Given that good education and exceptional job skills are mandatory to achieve success in life, having saving for child plan will help you counter these issues. Besides a little effort pushed can help you create a corpus for their marriage or might be laying the first stone of their businesses. Be sure to speak with your financial advisor about the benefits of each option in order to determine which avenue is the best.

 Choosing how to save for a child’s future involves good strategy and implementation. You need to have some money that is easy-to-access as well. Lastly, you have to bear in mind what is your child’s requirement and try to provide the returns around that timespan.