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HOW TO SAVE MONEY FOR YOUR CHILDREN : GIVE THEM BRIGHT AND SECURE FUTURE

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To parents, children are their world. They can do anything for their well being, happiness and secure future. Raising a child is no doubt a precious and amazing experience but also a thing of great responsibility. When a couple get to know they are expecting, they start to make plans regarding their child future. Earlier, a girl child was considered a burden as marrying her was expensive due to social evils like dowry. But now people are more educated and they welcome both boy and girl with immense happiness.

If you are not a parent yet, you may think raising a child is not a costly affair because they don’t eat much ,share same home and not much medication expenses. But let me bring some points to your notice that a 10-12 years child can cost you lakhs per year. Now a days medical facilities like their vaccination, school fee, tuition fee and clothing expenses are rising. Especially, education fee has been to raised 150 times and will be following the same pattern. Sending your child to college to become something in life requires heavy investment. So investment has become priority for all parents. Here are some tips for parents to be future ready:

TIPS FOR SAVING MONEY FOR CHILDREN:

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EARLY SAVING :

If you start early, you can save a lot more money. Look for secure investment schemes that can give you best interest rates or multiply your money fast. Keeping your money idle in lockers cannot help in anyway, bring it to work.

SUKANYA SAMRIDHI SCHEME:

Indian government has this scheme to encourage saving for girl child. It can be opened from the time of birth till your daughter attains 10 years of age. Minimum of Rs 1,000 and maximum of Rs 1.5 lakh can be invested every year. Deposits can be made for 14 years and maturity period of the account would be 21 years from the date of opening the account. The interest rate is an attractive 8.2 per cent per annum which is subject to change.

PPF:

It is the best saving scheme according to experts as it gives good interest rates and flexible investment. It’s maturity period is 15 years that is good for child’s education and marriage. You can invest as low as Rs 500 every year and also as and when you want. However, there is an investment upper limit of Rs 1.5 lakh for this account.

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INSURE YOURSELF TO COVER RISK:

Life is so uncertain. So one must buy good insurance for oneself to secure your family and all dependents. Buying insurance will keep your children secure from financial crisis in case of any mishap. Keep in notice that amount of insure should adequately fulfill your children needs like education, health or marriage.

SELL !! AS THEY GROW UP:

It may seem hard because you feel emotionally attached to belongings of your children. Buying expensive things for your child can be unhealthy for your budget and future savings. Problem with kids is as they grow many things become useless for them, so there is no point buying more expensive things like stroller, bouncer and even expensive clothes.

Try reselling all the things that can be resold at good price.

SAVE FOR SHORT TERM GOALS:

Higher education or marriage are long term plans and need big investment but small term goals like admission fee, school uniform, books or medical emergency need investment for short term. One need to invest in short term funds, income funds, fixed deposits with less maturity period.

INVEST ON CHILD CAPACITY AND EDUCATE THEM:

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Investing money in bank can fetch you got interest, but investing time and trust in your child’s capabilities can give you far better results. They can earn better living for themselves. Try educating them how to value money and save for future.