Those of us who are parents know the financial pressures of todays world in raising them as best we can. And those of us who are not yet parents must sure be worried about how they may eventually cope with the needs. Birthing expenses, food, shelter, clothing, education, celebrations… the list goes on! The key to taking control of such a situation is to start your financial planning at the earliest and streamline your wealth management. Through research and experience, we have found that the most effective way to reach our financial goals and save for our children is by harnessing mutual fund returns.
Here is a small calculation on the basic immediate expenses (on an approximate) required, if you decide to have a child:
- Expenses for the expecting mother and her requirements – Rs. 75,000
- Charges for hospital/birthing – 3,00,000
- Expenses for baby – 1,50,000
TOTAL = Rs. 5,25,000
And, keep in mind that these are just the expenses involved in having a baby!
Now, consider the approximate expenses involved in raising a child (upto 27 years)
- Food, shelter & recreation – Rs. 27,00,000
- Education – Rs. 50,00,000
- Marriage – Rs. 40,00,000
TOTAL = 1.17 crores
Are we prepared for that?! And this is not including unforeseen circumstances like costs involved in medical emergencies and so on. So, to have a child, you require approximately Rs. 1.22 crores!
Although the task seems very daunting when it is presented in front of you, with just a little effort and planning, we can all put a roadmap into place to ensure stress-free financial planning for our kids. Speak to your trusted financial advisor about the corpus that you want to set up for your children and he will help you achieve it by providing the best investment options. To make it all the more convenient to suit your busy schedule, you can make use of online mutual fund platforms that you can access anywhere at anytime, as long as you have an internet connection. The best option is to set up an SIP investment in the name of your child and redeem it at the time of its need. You can start investing with as much or as little as you’d like!