The five things to take note when saving money for your child’s future


Getting married is the first step towards a life that will make you an even more responsible person in future. Being parent is an overpowering feeling that transforms a man into a super dad and woman to a superwoman. When the toddlers start growing, you start planning about their expenses for their school.

That is how saving becomes your priority. Your habit of squandering takes a back seat, and you begin counting even a penny. Soon after your children start going to their school, you sketch dream of better further education and a better life.

The rate at which inflation hits you, do you realize how difficult it can be if you don’t start saving now? What may be the best saving plan for child now may be a secondary plan, fifteen to twenty years from now.  With the increasing responsibility towards your spouse, children, and home, the task of saving can become a stressful one.

With a little planning and early planning, both of you can tackle the situation gracefully with the best investment plan. There are a few points you must consider while planning to save for your child’s future. Let us learn about them.

Tenure of Investment

It is essential that you consider the tenure of the investment. Let us cite an example. Suppose, your child is five years old now. After 15 years, your child may wish to study somewhere else and not within the same city. Moreover, the expenditure for higher studies is rising at a faster pace owing to the competition among children and scarcity of jobs. In that stiff competition where the cost of education including the boarding and lifestyle cost can be exorbitantly high, an investment with a tenure of not less than 15 years will be the best. The tenure also depends on the two questions, “when I need the money?” and “how long I am willing to invest?”

Where to Invest

When you decide on the tenure of the investment, the next point to consider is where to invest. Your decision will ideally depend on the risk profile of the investor. You can go through some risk assessment tools online and find the best investment option for your profile. If the plan is to invest for more than five years, it is advisable to go for more exposure to equity.

Protecting the Child from all Exigencies

You are planning for your child’s future but what if you are not there to support your kid? Are you sure your planning will help? Term life insurance helps in meeting the demand of the school, college fee and other expenses of the child. Death of the bread earner will not bring about a drastic change financially apart from the physical loss for the rest of the dependents’ lives.


Investment should give you the flexibility to switch from high-risk equity to low-risk debt at a click of a button without the need of any liquidation of funds. Always look for this element in the investment you choose or planning to pick. With the flexibility that you obtain, you avoid losses and fewer returns.

Tax Efficient

Investment means spending from your pocket now for better returns in future. Saving tax is everyone’s goal. It is always a good idea to invest in an instrument that saves tax. The idea should be investing in a tax saving instrument. You need to analyse the investment option depending on the tax efficiency. Check for investments and their benefits that are entirely tax-free.

Your child is your priority and taking cautious steps to their secured life is your goal. Attaining the target within a given tenure will give you the required financial freedom and a stress-free life for your dependents; especially your child. It is your duty as a parent to provide a shape to your child’s future. An investment that is the result of the above permutation and combination will make your today hassle free and tomorrow financially secure.

You either plan to fail or fail to plan.”

What is your mantra for your child?


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