All parents want to bring up their kids to become responsible and successful human beings doing well throughout life. Parents are ready to sacrifice anything to secure their kid’s future. This becomes essential especially when it is important to do proper
financial planning for the growth and development of child. Financial planning should start as early as possible so that the parents do not have any financial burden and their kids should not have grievances from them.
When the budget is tight and the income is limited and fixed, parents have to plan and invest in such a way that their kid has the leverage to choose any career or field of education he wants. There should be no restriction just because the parents lack money to support their kid’s education.
Steps of Financial Planning for Kids
Have a quick look at the steps for financial planning for your kids.
When You Should Start Financial Planning for Your Kid?
Financial planning for your kid can start even before the birth of your kid. Some couples make plans even before they conceive. This is the case when both the partners are working and the household expenses are covered by the income of both of them. The financial planning done at this time helps cover the expenses of the child birth and everything related when the mother has to stay back home on maternity leave.
Financial Planning for Kid’s Education
Second step of planning includes financial planning for the education of your kid. Though having kids is a matter of pride and happiness, it is a great responsibility to bring up your kid and help him have his academic dreams accomplished.
When you are planning for your retirement and your kid’s education, do keep in mind the rising cost of education. Childcare and education has been the biggest expenditures in the recent past.
Financial Planning for Kid’s Future Life
Save for your kid’s wedding and your grand kids also. This will save you from feeling embarrassed when you are retired and your source of income comes to an end. When you are thinking about your kid’s future and establishment, you should also pay attention to your retirement.
In India parents have to make financial planning for the marriage especially if it is a girl child. This money is utilized in the wedding ceremony and the rituals that are associated with it.
Financial planning for the kid’s health is also an important aspect that the parents should not overlook.
Parents should save enough money to help their child establish or start a business if he has interest in that field. Do not forget to analyze his caliber and abilities before you provide fund so that you are assured about his seriousness.
Financial Planning for Recreation and Entertainment of Kid
If your income allows, plan a vacation in intervals that suit you and let your kid explore the adventures and escapades in which he finds interest.
It is advisable that you teach your kid from the very beginning the importance of money in life and at the same time educate him how to save money as well. This will help your child lead a peaceful and comfortable life.
When you have a limited income and a tight budget, financial planning becomes difficult yet it is very essential too. You can take professional advice and make sensible investments so that you get good returns. Just keep in mind that you do not enter into any fraudulent work or get trapped into market gimmicks. Invest prudently and try to avoid high risks.