Children’s Day is celebrated across India on 14th November on the birthday of India’s first Prime Minister Pandit Jawahar Lal Nehru. This year we have double celebrations, Diwali and Children’s day, on this Day. The best gift ever for a child is the financial planning at an early age. Right from the beginning, a parent must focus on understanding a child’s needs with respect to their higher education cost as well as college fees and other expenses. As the child starts having dreams and aspirations, parents too along with their children must explore, identify and pursue the best available options to aid and nurture their dreams for a safe, sound and accomplished future. This process can also include involving and educating their ward about the secure routes and options for their future journey.
Investment for children has always been a challenge for parents because in this task they need to prepare today for a better tomorrow. And parents today are more aware of the opportunities and means at their disposal to re-write the traditional methods of parenting. Ms. Anjali Malhotra, Chief Customer, Marketing, Digital and IT Officer, Aviva Life Insurance suggests few ways to secure and invest for child’s future.
Start planning early
While millennial parents today are resourceful and have a lot of readily available information, yet, most of them continue to be poor financial planners with majority of them having little or no financial planning about their child’s higher education. Due to this, often, they do not have enough saving and end up going in debt paying for their child’s higher education. Hence, it becomes imperative, in today’s time to start planning finances early to ensure that, neither the parents nor their child face any obstacle in their path to realize their dream.
Educate your child and ensure holistic development
Parents are considered the first teachers of their children. However, apart from teaching children the difference between right and wrong, parents must take a step ahead and do more to ensure a secure financial future for their children. For example, parents can have regular financial conversations with their children. This Children's Day can be a good opportunity for parents to start giving investment lessons to their children. While in early childhood, parents can talk about simple things like income, spending and saving, later parents can include important lessons about banks, fixed deposits, savings bank accounts and recurring deposits as well as various government schemes as well as the importance of having a good insurance plan to secure their financial future.
Know your child’s interest and talent
Millennials are the driving force of our nation, rising beyond conventional opportunities and treading the lesser travelled career-paths. Today, opportunities have diversified and there are so many more career and growth options available that what was available earlier. But to ensure a child’s happiness and success, it is imperative for the parents to identify their child’s inherent talent and then to hone it accordingly. In order to know their dreams, talents and aspirations, parents should explore structured aptitude assessments that include expert guidance and can be used to understand the cognitive skills and capabilities of their kids. Aviva Kid-O-Scope is one-of-a-kind online platform that helps parents identify their child’s inherent talent at an early age. Today’s millennial parents want nothing but the best for their children and this is just the kind of tool that can help them ensure a bright future for their children. The education cost calculator that comes with this platform also helps parents plan their finances for their child’s higher education.
Invest in Child Insurance plans
This Children’s Day do something that remains with your child forever. Gift your child an insurance plan which not only helps build a secure fund for her education but also safeguards her dream career. The earlier you secure a child insurance plan, the bigger the amount of funds you can save to ensure the protection of the child’s future, if life takes a sudden turn. Most plans offer convenient premium terms to individuals. Therefore, you can mostly choose from monthly, half-yearly, or annual payments. These insurance plans also have tax benefits associated with them. This makes a child insurance plan not just a form of saving and planning, but also one for investment purpose.
In conclusion, it is best if you prepare for your child’s future as much as you take care of their present. One should have a contingency plan in place beforehand to ensure that your child has a happy and prosperous life.