How to Save Money for your Child's Future?

1,808 Views Updated: 23 Mar 2018
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How to Save Money for your Child's Future?
Being a father or mother isn't an easy job, planning for your child even before you think of yourself, and making all the sacrifices you're forced upon, it takes a lot of courage to be parents. Parenting would have been a little easier if we could predict the future, isn't it? We would know of all the possibilities and could prepare for them beforehand. Alas! It's not like that, and the future remains unpredictable and bleak.
But, there are other ways to make parenting easier other than predicting the future. However, again, it's full of a lot of individual compromises and stressful times. Start saving for your child even before you have one. True, we can't predict the future, but we can be prepared for it.
So, given below is how you can be good parents by investing for your child's future and secure their future in the best possible way. 

 Steps To Secure Your Kid's Future

#1. Evaluate Your Child's Future Needs
Know what you're investing for to understand how much you should invest. You never know what your child is planning unless they get old enough to share it with you. So, evaluation of all the possibilities is very important to understand what all you need to invest for. Maybe your child is planning for a career in any industry which needs specific skills, and for which your child might need extra education along with the basic one. So, you never know, and you can’t even predict your child’s future. Forecast all the needs that might arise in future before you start to invest.

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(Image Courtesy: India Today)
#2. Start A Little Early
You never know of the circumstances that will occur later in life. Thus, the best time to start saving is when you realize the fact that you need to start investing for your children's future. Starting a little early is always a useful habit as you get used to 'saving money' by the time you start planning for a child. The need to save money just when your child is born may frustrate you, as you'll be forced to cut down on your expenses, thus, make it a habit from the very start.
Moreover, these little investments for the future of your child from the start will grow into a substantial one by the time your child is born, and you’ll be at a little ease. Start with a smaller amount in the beginning and buckle up later with bigger investments. After all, if you’re planning to get married you’ll be having a child later on, so why not start a little early.

#3. Be Consistent
Consistency is the key to better results. But many fail to comprehend the situation and introduce a lapse in their saving routine. Thus, as abovementioned, in the initial period keep the investment amount as low as possible, so it's easier for you to manage that amount regularly. Make this habit of saving a daily life routine.
Choose a good investment strategy, rather than investing once or twice a year in bulk, try to invest in small amounts every month. Needs occur every now and then, and at such situations, you'll be forced to use the saved money if it is there with you for long.

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(Image Courtesy: ICICI Pru Blog)
#4. Seek Expert Opinions
Investing for kids is a tedious job, and you'll have a hard time finding the right options, but with a little help, things will get pretty easier. Planning for situations which you have never faced is a little difficult task. In such situations, an expert's help is always a bliss. These investment experts have personal experience as well as professional experience that makes them eligible to give the right advice. So, Google an investment expert near you and book an appointment.

#5. Talk To Your Own Parents
If you’re a young successful adult living a happy life, it’s because your parents did a good job in securing your future. And, they will always have a little more of experience on the subject which you’re pursuing. And, you know they did well in investing for their child’s future, and that’s the reason you’re in the situation to plan well for your child today.
So, don’t miss this opportunity and seek some guidance from your old pals, they definitely know ‘what to do’ better than you. Take some cues from their investment strategy if it fits yours. Or, even the better idea, let your dad or mom make an investment strategy for their grandchild's, this will give them a sense of importance and responsibility towards their grandchild, and strengthen their bond.

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(Image Courtesy: Shutterstock)
#6. Leverage Tax Savings And Child Investment Plans
In most cases, if you're saving for your child's future, then it's mostly for their college. As per the fundamental rights of the citizens of USA, Uk, Canada, and other major countries, the basic elementary education is totally free and no one has to pay for it. Thus, ultimately all your savings are aimed at providing a better college education to your child.
The best ways to invest for a child is to use the special norms introduced by the government. The Government has some savings plan that permits you to save on tax in every country. Your savings are tax-free and such plans are sponsored by state agencies or educational institutions.
However, if you're planning to use this money for other purposes, and investing in the plan to save the tax, please don't do it because the consequences can be very severe. Also, before investing in these plans, take a cautionary step and talk to a legally qualified financial advisor about the pros and cons.

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(Image Courtesy: Policy Hunt)
#7. Talk To Your Children About Their Future
As an adult, we all know the importance of money in our life. We have seen the worst things in life happening because of money, some of us even had to give up on our dreams for it, and some of us weren't even privileged to think of pursuing our dreams because money was not a luxury in life. So, no matter how much you can afford, it's important for you to teach your children the importance of money.
It has often been observed that kids who grow up with all the privileges without working for it lack appreciation as compared to children who work for the luxuries in life. So, instead of handicapping your children by providing all the luxuries without making them work for it, start involving them in the process and making them contribute, no matter how small the contribution is.
Your kids contributing to their educational savings plan will help them learn an important lesson in life, the importance of money. And, this will help your child grow into a better individual with better financial management skills.
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(Image Courtesy: Market Watch)
#8. Always Save A Little Extra For Mayday Situation
The competition is increasing with the increase in population in every country, and it's near to impossible to get a job with the basic college education. One has to have a skill based course certification to land a good job in their respective field. Every employer's favors a candidate with an extra skill, a little of practical experience. The things are not the same anymore like it used to be in the times of our forefathers. Today, the number of jobs is limited and the number of applicants is higher. So, by the time your child grows up and gets into a college, an extra skill might get mandatory. Thus, it's always a safe option to save for a mayday situation, so, your child doesn't have to suffer because of inadequate funds.

Moreover, the cost of education might change by the time your child grows up to get in a college. I’m sure that you agree with the fact. So, better be prepared than feel sorry later on.

We hope you liked the article. Let us know if you have any doubts or suggestion for fellow parents using the comment box.

(Featured Image Courtesy: Aia)

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