Children’s Future Planning

Parents play a substantial role in designing their child’s future. How the child grows up to be or how he/she takes on life, majorly depends on parents. While a strong foundation can help the child in leading a fulfilling life, a weak foundation can make them struggle for very small things. Starting from ethics to education, parents are responsible for child’s growth. When parents support children in their decisions, the children start having more confidence in their abilities and skills. They start thinking of taking risks which can lead to a bright and successful career.
Education costs in India are higher than ever before and rising inflation is pushing up costs significantly every successive year. Even enrolling children to kindergarten can end up costing parents a lakh today. These costs will only multiply as the child gets older. Higher education is even more expensive, with the best schools and colleges raising fees significantly. A sound financial plan is essential to provide your children with a secure future. It is important to make investments basis your children’s dreams and future cash flow requirements. You must also time the investments in such a way that the returns are received during the major milestones of your children’s lives, when the funds are needed most.

Here's a guideline on how you can provide for your children's needs:

  • Start planning early: An earlier start in investing for your children’s future improves the odds of higher returns. Therefore, the longer you invest, the higher are the profits earned. Here are the reasons:
    1. The power of compounding
    2. Reduced effect of market volatilities
    3. Nominal investments
  • Evaluate children’s future needs: You need to support your children until they start earning. Hence, you should consider every expense that may arise in the future, to save adequate amounts for them. In addition to the basic requirements of your child, remember inflation when you calculate the funds needed for your children’s future. Preparing for inflation will help you plan better for the future value of costs.
  • Secure your children with life insurance: Life insurance is a great financial instrument that will help to secure your children’s future. Opt for child plans designed to support children’s needs with premium waiver benefit. This ensures that in case of an unfortunate event, your children receive the payout without having to pay the future premiums till the end of the policy term. Hence, they will have enough funds to shield them from financial shortfalls in your absence.
  • Prioritize goals: A secure future depends on being financially prepared for the key milestones of your children’s lives, such as college admission, marriage, and buying property. You can better manage the funds if you prioritize the goals and accordingly create separate investments for each need.
    Parents often consider children’s education as the top-most priority.
  • Take Advantage of the compounding effect: The best part about investing in a child plan is that you get to enjoy the compounding interest effect. By systematic & discipline investment , compound interest will help make your money grow at a faster rate than the current rate of inflation thus allowing you to build a large enough corpus for your child’s future educational needs.
  • Tax Benefits: When you opt for a child plan, you also stand to gain several tax exemptions. The premiums you pay towards a child plan are tax exempted under section 80(C) of the Income Tax Act up to a maximum of 1,50,000/ annually and even  sometimes maturity amount is exempt from tax under Section 10(10D) of the Income Tax Act, 1961.

How to achieve the objective

The best way to start is with a mix of savings in debt products (like FD, SSY, NPS, EPF, DSOPF, PPF etc) and investments in mutual funds and equity markets.

While the debt risk free products will give you assured, though low returns that will multiply every year, the mutual fund will balance it out with a possibility of high growth. This strategy will help you better manage your risks and returns.

“The day you plant the seed is not the day you eat the fruit. So sooner you sow these seeds of savings and investments, better the chances of your money growing into a big enough tree to provide fruits to your children.”

Do You Need Assistance of Experts?

Even we have basic knowledge about gardening & with some research we can do our own but still we prefer to hire a gardener who can better take cares of our plants, flowers & fruits. They can with their expert knowledge about caring ideas can shape your garden a dream place for you. Same way child future plan is an important issue cannot be a one-time affair. Only a financial expert, who understands the market forces and is into the thick of it can handle such delicate tasks. That expert should, in addition, understand your requirements and dreams, and the availability of your resources so that the financial solutions just right for you can be homed on to.


Child future plans are ideal for ensuring funds for your children’s future needs.

  • You can invest small sums regularly without having to bear the burden of a lump-sum investment. Thus, when your children are ready, a large amount is also ready to fund their goals. Invest today in the right financial plan to fulfill the dreams of your children.
  • Secure your children with life insurance. It is a great financial instrument that will provide for a financial security blanket  to cover any eventuality.

Please contact us for more details. We will be happy to serve you.