Every parent likes to think it big. Their children will become an accomplished professional to be skilful in their field of work and be self sufficient enough to lead a decent and a prosperous life. Parent involvement is the most sticking factor in a career development leads to the future success story of a child. Parents need to start webbing those thoughts turn into prospective actions and to learn the art of saving. Saving your income and investing it in a proper platform provides you with that extra punch of in-building your child with a strong foundation towards success. Compounding your investment to grow through the years needs to be started very early. The return of your investment should be sufficient enough for higher education purpose or provide him/her that financial security.
Now then you need a chalked out financial plan to determine for your child’s future goals. Start working paving the way towards that point of achievement.
What you aspire for your child
Do set a concrete goal within your mind is very important to start the proceedings. You want to provide higher education or you want to make sure capital exist for your child to start a business or just leave the wealth accumulated for his/her future trouble free.
Forecast the expenses needed by your child maybe in education of college fees or some other viable expenses that has to be taken care and calculated so that sufficient funds is available.
Which vehicles to invest
Investing your savings should be an ideal portfolio mix. Do not take too much risk in your investments with proportional relationship with your income, the expenses you have to incur, responsibilities towards your family and so forth. The right investment mix can be that of bonds, mutual fund or investment in equity shares. You can make your investment Growth Funds, Growth and income Funds, Equity Income Funds, Balanced Funds, Bond Funds, Tax- exempt Bond Funds, Money Market Funds, Portfolio Series Funds, College Target Date Due Funds etc.
Be focussed; don’t apply those funds in some other purpose
These savings are only meant for your child’s future not for your future investment to meet your retirement expenses, or your medical bills and other fixed liabilities at your old age. Always differentiate and make separate investment to meet up those.
Judge before you proceed to invest
There are lots of marketing glix happening that can you tend to get carried away. Evaluate your requirement, study the features of the product and then take the right decision to proceed to purchase.
Always cover your child with an Insurance scheme
A sudden demise of the beadier can lead to shattering of dreams of a child for pursuing higher education.
As parents you are the umbrella of your child to protect this small sapling grows up into a tree. These trees need water as financial security for them to sustain.