On Sunday, the whole world celebrated father’s day. The occasion showing the beautiful and pure bond between father and child. It is an unsaid trust that a child has in his father. He knows, his father will be there for him, whenever he will need. It is the strong emotional support that the father provides.
But only emotional support is not enough. In today’s world, education expenses, healthcare expenses have touched the sky. And that is the reason you should plan for your child’s secure future.
If you are a young father then, the following are the things that you need to consider.
Financial goal setting:
The first step is to set goals for your child’s future. You can divide the goals into three categories:
First is a short-term goal, it includes play center expenses, extra-curricular activities’ expenses, etc. The second one is a medium-term goal, which may include graduation expenses, post-graduation expenses, etc. The third is a long-term goal like marriage, traveling, etc.
Financial planning:
Once a goal setting is done, next is you have to do proper financial planning. It includes an analysis of your income, expenses, an amount that you can save, the amount of investment that you need to do, etc. Proper planning is required to reach the goals.
Save:
Once the goal setting and planning are done, then after comes the implementation stage. In this step, you have to save as per the plan and proper evaluation should be done. If you find any major differences between actual savings and planned savings, then try to find out the reason for the differences. Accordingly, take corrective measures.
Invest:
Now you have to invest the money you have saved. For child’s security, there are a few investments that you can go for like Sukanya Samriddhi, SIP in the child-specific scheme, etc.
Insurance for a child and mother:
Here you can take maternal insurance which many companies provide. It provides compensation for all the expenses of a newborn baby along with maternity expenses. Benefits and waiting periods differ from one insurance provider to the other. Along with that, life insurance is important for the child.
Cultivate a habit of savings:
A child follows an example, not advice. So, you have to be a living example of a financial planner. You need to educate your child about the importance of savings and investments. You can your child extra pocket money when he/she saves some money. Along with that, you can go for a children’s savings account, which gives interest on savings and provides a co-owner facility too.
At last:
Along with financial needs, you have to make sure you fulfill your child’s emotional needs. A child needs financial, mental, and emotional support from parents. So, make sure you spend time with your toddler. Make sure he/she feels emotionally secure because of you.
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