How to plan for your children’s future?
There has been a drastic change in raising kids since few years. Financial, social and cultural change is responsible for this. Nowadays women work and are equally involved in all the decisions taken at home. Parents start planning for kid’s future even before their birth. As smaller families are seen, parents take care of all minute details in planning their kids future.
There has been increasing the funds required for raising kids. Educational rates are increasing day by day. More and more parents prefer sending their kids abroad for studies. This increases the cost of education even more. These costs will increase more in future due to demand and inflation. Also, the society we live in encourages us to save for children education.
According to the survey done by HDFC Life Valueness Life Freedom Index carried in 11 cities under tier 1 and tier 2 showed that Indian people from cities give first preference to their children education (75%). Many times due to other responsibilities some parents start planning late for their kids future. But in actual sense parents should start planning for their kids future in their early years like 3-8 years. By doing this they can not only gain financial benefits but will have more than 10 years for savings and at times of higher education, they will have more funds.
Life insurance policies are created keeping in mind the fact that risk of investment is reduced and more savings can be done. ULIP not only gives more financial security but also good benefits as compared to equities. These are not only transparent but also facilitate the customer to choose according to their need. The most favorite investment tools like FD’s and post office savings gives fewer returns on less duration.
On the other hand, equity, not only beats inflation but also gives higher interest in short duration. Also, by investing in insurance, parents get financial freedom. Such benefits are not available in FD. By tsking child plan, you can secure your kids future at the time of emergency too. The parent needs money for kids occasionally. They need money for kids in school, college, higher studies and at the time of marriage. One should calculate kid’s expenditure according to their age. For instance, the child who studies in 10th grade will require more money 5 years later for higher studies.
Insurance gives options for higher returns and with drawls according to the needs as it understands the situation.
These with drawls can be used for extra curriculum activities like sports, dance, drawing and even to buy electronic gadgets for them. at the end of the policy, one can have an aggregated amount. This money can be used in higher education or at the time of marriage. Hence with these investments, future of kids gets secured easily.
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