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6 ways to financial immunize the future of your little one



Life throws us surprises now and then and they might not always be pleasant. Parenting a child is one of the most joyous experiences of one's life. The past couple of months have been difficult as you and your family must be facing health and financial challenges. A key learning from this phase is that adequate financial planning equips you to deal with uncertainties and helps in securing the future of your child. 

Here are few steps which can help you immunize the future of your little one -

Open a bank account

Opening a bank account is the primary step to commencing financial planning for your child. A bank account is an excellent way of ensuring liquid cash during emergencies.

Open fixed and recurring deposits.


Fixed and recurring deposits help in inculcating a disciplined approach to building wealth. It is a good option for those with a limited appetite for risk and ensures consistent returns even during uncertain times.

Plan towards beating inflation.

Given the increasing rate of inflation, child-care, education and other expenses are only bound to increase in the future. According to data provided by the National Sample Survey Office, the cost of education increased by approximately 195 per cent between 2008 and 2014 and the cost of professional and technical courses increased by 96 per cent. Rising inflation should not be a reason to compromise on their needs. Smart planning and disciplined investments can help in creating a promising future. Calculate the amount of money required to meet your child’s requirements in a couple of years from now, considering inflation. After you have an approximate figure, start working backwards and save and invest a fixed sum of money each month based on your appetite for risk.

For example, in case you desire to create a corpus of Rs. 40 lakhs in the next 10 years, it is important to opt for investment tools that will offer inflation-beating returns and help achieve the goals set for your child’s future.

Purchase adequate insurance.

Your little one's future greatly depends on you and your spouse being financially secure. An insurance policy goes a long way in safeguarding your interests, should something go wrong. Ensure that you have a term insurance plan for yourself and a suitable insurance plan for your child. Evaluate your policy regularly and increase the cover in case required. Compare different plans and shortlist on one that best suits your needs.


Purchase health cover

Do you or your family have a health insurance cover? If not, purchase an adequate one and include your child under the scope of your policy. 

In addition to these tips, do not panic and abruptly cease investments during difficult economic times. Stay confident and adapt your investment strategy to help secure your child's financial future.



Prathamesh Mahadik.
8286969980.






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