5 Financial Commitments Every Parent Should Consider

Once the baby is born, amongst the other things you get involved in and do, there is very important and critical matter that one needs to address. For me, it came as a learning as soon as I became a parent and here are my recommendations to consider regarding finances post child.

 

I would like to list 5 recommendations for every parent’s consideration:

 

1. Savings Account - Do open a savings account; sooner the better. Start with the money you receive from people as gift and start depositing in the same. Remember, you never had this money and were managing well, you don’t need it now either. Please save it for the little one!! If you have a girl child, you can open ‘Sukanya Samridhi Account’ which is under Government scheme and has better interests, it requires some minimum amount INR 500 to be deposited every year and maximum INR 1.5lacs.

 

2. Child Education Plan/similar investment - Nothing is early, if it concerns secure future of your child, the sooner you invest better it is as you might start reaping the benefits at the right age of the kid with better premiums to pay now too. My idea is not to promote certain schemes but the idea to invest for child’s education. There are some great plans available in market like LIC – Jeevan Tarun (part of my portfolio), HDFC Children’s gift plan etc. You can choose to go Big Bang (one-time investment) scheme or a phased (monthly/yearly) one, money-back schemes for short term or long-term goals depending upon on your financial planning.

 

 

3. Family Floater Health Insurance - Well, I postponed this one for some time but convinced now to have this in the kitty as sometimes company linked Health Insurance is not sufficient and has dependency on your job. The earlier you get a family scheme at right age with no /less health problems, the better premiums you will get. Please explore some of the options like National Insurance (better settlement rates, higher premiums), MAX Bupa Health Insurance (supports multiple claims in a year with top up) etc. depending upon your needs and investment appetite.

 

4. Life Insurance - This is little touchy and shares different believes as why one needs to buy a life insurance for kids. I shall leave you to be the best judge for the same. However, there are some schemes available in the market which offers combined life insurance for you (guardian) and your child like LIC Tarun etc.

 

5. Lastly, do save for Leisure and fun too - Create a separate account if need be. Do keep a small amount monthly aside to do what you like and enjoy as a family. For us it is travel to various places and after first vacation with my kid I have come to believe that Kids love vacations too and this will become more of a need for years to come.

 

Start small and Save BIG. Do start investing smaller amounts towards above and you shall repeat the benefits before you realize.  Don’t wait for things to work out later as you do know, time is money!!

 

Also, a request, if you do happen to read the same and apply, kindly pass on the word to staff/maids working under you as they might not have the platform to read but can surely benefit from some of the pointers above if not all.

 

This article is an entry for BLOG-A-THON.

 

Also Read - GST Made Simple by a Mom Herself! Read if You Didn’t Know What GST Means to You.

Explore the entire collection of articles: Parenting Gyaan

 

 

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Comments (22)



Sweta Makhecha

Really good article Moneet. A child is a financial responsibility as well. And planning ahead and sensibly for her/his future is n

Sweta Makhecha

... very important

Moneet Kaur

Absolutely Sweta.. The earlier we start channelising our efforts towards it the better I feel it is..

Anshu Kalra

Well written Moneet. Cent percent true.

Moneet Kaur

Thanks Anshu

swati gole

This is just in time

Shilpa Bajaj

Really like the pics of advise shared here. Thanks a lot dear. Keep writing

rajiv sarin

Good job...keep it up. ..

Moneet Kaur

Swati - Hope this helps. Happy parenting

Moneet Kaur

Thanks Shilpa and Rajiv

Manpreet Kaur Bhatia

Great advice and insight into one of the most important aspect for the well being of the child 👍

Sarbjit kaur

Very well thought; of and put in right; perspective

Neha Sharma

I'm not a parent but there are some tips for us here at well! Thank you

Vikrant Rajput

Nice ! Yes, financial planning is important and must start as early as possible. Good tips !

Moneet Kaur

Thanks; Manpreet, Sarbjit, Neha and Vikrant

Abhishek Singh

Sometimes we take things for granted when it comes to Finances, this article put financial planning in right perspective. Thanks.

Amit Jain

I agree with Abhishek !

Amit Jain

I agree with what Abhishek mentioned. We should not take things granted

sudz

#1 done 😊 .. on to the next!

Moneet Kaur

sudz great going. keep up the momentum!!

khusboo Sharma mazumder

Yes; it's very much important to do for our kids. Thanks for your valuable suggestions.

Moneet Kaur

khusboo Sharma mazumder I am glad you found it useful.

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