Reported by: banking|Updated: June 6, 2019
Being a parent is an amazing feeling, but parenthood comes with a lot of responsibility; from raising them to fulfilling their dreams and securing their future. With change in times, to be able to give the best to your child necessitates thoughtful financial planning from an early stage. With growing inflation and rising competition it is imperative to secure yourself from uncertainties and protect your child’s future.
As parents it is important that you know your child’s interests, inherent talents, and aspirations for a better understanding of their unique strengths which will help them in the longer run. There are 5 ways in which you can ensure professional success for your child and help him or her realize his or her dreams.
Insure your child’s future
With inflation impacting almost every sector, it becomes challenging at times to cover all the needs of your child such as his or her education and health. Every parent wants to ensure nothing but the best for their child. Why take a loan or sell or mortgage your assets? A child insurance plan allows you to secure your child’s future by ensuring you are financially secured and do not have to worry about money when it comes to education or healthcare.
Identify their inherent talent
While we start planning for our children even before they are born, be it about how we raise them or the profession we would like them to pursue, it is also important that we identify what their inherent talents are. Today there are psychometric assessments and tools that allow you to identify one’s innate skills at a very young age. Additionally, using an education cost calculator can help you with an estimated cost for the child’s education considering all external factors like inflation etc and help you plan financial requirements well in advance.
Secure oneself from future uncertainties
As parents, the welfare and well-being of your child is your responsibility. This includes securing the child’s future even in your absence. By protecting yourself with a life insurance policy, it will not just be beneficial to you and help you achieve your life goals but also ensure your liabilities and debts are not passed on to your loved ones in case of an unforeseen event.
Invest in fixed deposits
While you can purchase insurance plans that fit your requirements, traditional form of savings such as fixed deposits is another simple way to ensure you have a corpus of funds to meet your child’s needs at every juncture as they map their journey. Plan your fixed deposits in a way that they mature at different points of time such as the time when your child enters school, goes for higher studies and then enters wedlock as well.
Write a free will
As parents, we mostly nominate our child in all the investments that we make. As you earn and acquire assets, you need to ensure a structured and smooth transition of passing the possessions to your loved ones. While stigmas continue to exist around writing a will, in today’s times, drafting one ensures your possessions are passed on to your heir in a hassle free manner.
Don’t wait till your children grow up to start planning for their future. Planning early will not just allow you ample time to give the best for your children but also time to nurture and raise them in the best possible way.
Anjali Malhotra is Chief Customer, Marketing and Digital Officer, Aviva Life Insurance.