Motherhood & Beyond

The Spunky Mom

  • thespunkymom

What is the Right Investment for your Kid ?

Updated: May 13, 2018

Have you ever wondered how the cost of living has increased and so is the cost of of the education of the kids ! With the rising costs it is imperative to start saving smartly for your kid. What better day to start investing than today! Here I am listing down few things that I have started doing for my baby.

  • Life Insurance - I would suggest be prudent and get life insurance if you don’t have one or increase your life cover if you already have. With the arrival of a baby the responsibility and the expenses increases. School fee, college education, providing him/ her the best quality life etc the list goes on.... Therefore it’s important to plan ahead.

  • Savings Account for a Kid - I have a separate account for my baby where I am the guardian. I make sure that his account is not to be touched by any of us and his savings are purely of the kid . So how do u keep the cash inflow- wherever we get cash as gifts on Baby’s birthday or special occasion, I make sure that I deposit in his savings account.

Later may be when the baby grows up a little, let him handle his account partly to make him understand finances and importance of money.

  • Recurring Deposit - For short term goals like to pay fee for schools , one may open up a recurring deposit that will help you to get through the playschool fees or daycares fee which are also quite expensive . The average cost of a playschool ranges from 50,000 to 2 lakh per year. One should be prepared to shell out 50k immediately once the kid starts going to the day care or Pre school. So for such short term goals, recurring deposits come handy!

  • SIP In Equity Mutual Fund : These are targeted for long term and can be explored something that I feel is a waste of money and mere eye wash is the “ Child Policies “ . The child policies simply exploit your emotions and while they look attractive they are high on costs with minimum benefit is what I feel.

If you are really interested in investing in child policies , suggest do a through research and then go for it ! You can add in the comment section, What are the other investment options can you guys suggest for kids ? I would like to know more, how do u save for your kids ?

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