5 Things to do to Safeguard the Future of Your Child

Every parent wishes to ensure the very best for their children. If you too wish to ensure a good better standard of living for your child, you will need a little financial planning. Investments, such as child insurance plans, could be a good idea. Here are some basic things you should do to secure your child’s future.

1.      Ensure the Best Education

The first step is to decide the school in which you want to enroll your child. Their schooling can open up a plethora of opportunities for them. Unlike the West, in India, it is the private schools, rather than those run by the government, that offer higher standards of education, with a focus on the child’s higher education needs. In this cutthroat world of competition, it is one’s qualifications that can ensure a lucrative and fulfilling career.

2.      Open a Savings Account

Many parents are put aside a specific portion from their monthly income towards their child's future financial needs. While it is a good idea to open a savings account for your little one and put in small amounts at regular intervals, also consider investing in long term fixed deposits, where you can earn higher interest.

3.      Invest in Gold

In India, gold holds a special emotional value and investing in gold jewellery for one’s child’s wedding is what every parent looks forward to. However, given that gold investments can bear good fruit, also consider investing in gold ETFs, which can give you returns without you having to risk owning tand storing physical gold. But make sure that your investment doesn't exceed 10%-15% of your overall investments.

4.      Buy Them an Insurance Policy

Do a little research online about child insurance plans or make a direct inquiry from a reputed company. Choose the right insurance policy, taking into account inflation and your child’s specific needs, while also keeping in mind the premium you can afford. Make sure the child plan offers you waiver of premium, in case you're unable to pay premium because of a disability due to an unfortunate event like an accident or the early demise of the parent. The policy should continue and the child should receive a fixed sum of money after a certain age.

5.      Insure Yourself for a Large Sum

The aim is to fulfill the everyday needs as well as cover your child's future expenses like education and marriage. Certain insurance policies provide money to you or your child when they are in the age group of 18-26 years, in your presence or absence. Life insurance can provide financial support in case of any unforeseen events and keep your family financially secure.