Starting a family is one of the most important decisions for parents. They have to take into account various factors before deciding to have a new family member. A mother goes through various changes physically and mentally while giving birth to a baby.Similarly, a father has to think about managing work along with family. Life of parents takes a 360 degree turn and everything in their life alters when a child comes in their life.Parents also have to keep in mind the management of monetary resources at their own best. With the happiness grows sense of responsibilities for parents. One of the major concerns of parents is to be financially settled.
There’s no end to child’s dreams and aspirations. Every child is special and has special qualities, which need to be carved and given a new shape. Parents must always advise the children to follow their passion. For excelling in any field, financial support is quite required nowadays. But with inflation becoming a major issue, a lot of concerns occupy a parent’s mind.
‘Can I hope my present income to rise in future?Will my income be able to fulfill the needs of children in future?’ These are certain questions which keep disturbing a parent.
We all know the answer. Well, “Prevention is better than cure”; it is better to be prepared for shortcomings rather than facing the consequences.The best way is to save from your present income. With so many saving plans for kids, it is difficult to figure out which one is most profitable. For sustaining the child’s future, there are also various child education plans for kids.
We bring you some ideas where parents can invest money for their child’s future:
- Fixed Deposit
If you’re saving for long term purposes fixed deposits is safest and secured mode of earnings. They provide more interest rate as compared to savings account. One has to deposit a sum of amount and retain it for a fixed number of years to earn interest on deposit. So, next time you’re depositing money in saving account do recall about fixed deposits.
- Mutual Funds
There is more risk involved in investing individually in stock markets. So, to lower the risk and increase the returns; mutual funds are the best way. Mutual funds are a way through which investments are made by clubbing up funds from different investors and then professionals manage these funds by investing in diversified holdings. With little risk there are higher returns. This helps in channelizing funds for every individual.
- Personalized long term investments
Other than investing in financial institutions; people can also invest in real estates, foreign currencies, commodities market, stock market etc. With sound knowledge one can invest for long tern purposes in these areas. In recent times, these markets have experienced a sudden rise.
So, now you have a brief idea where to invest to avail maximum returns. There are many child education plans available in financial institutions. Other than long term investment plans, parents can also opt for money saving tips to make maximum use of available resources.
Below are some best ways to save money for kids:
Remember the 3 R’s- Recycle, Reuse, Reduce!
Never forget the three R’s: Recycle, Reuse, Reduce. Never throw anything than can be recycle. This is the best way to save money to use things that are already available at home. Teaching kids about these three R’s is best habit they can inculcate for lifetime savings.
Differentiate between ‘Needs& Wants’
In large super markets we tend to buy things we don’t need just to avail discounts or hampers. So, it is important for parents to understand and teach the child the difference between needs and wants.Adapt the popular motto ‘Needs are limited but wants are infinite’, so fulfill your needs rather than spending on useless wants.
Go with the MONTHLY BUDGET
With so many expenses and less incomes it is important to prepare a monthly budget before-hand. Maintaining budget helps parents to spend according to their needs. With preparation of advanced budget there is also a room for savings. Well, it is an eye-opener of your expenditures!
Follow shopping Mantras
With enormous products in the market available with offers, anyone can get lured. So it is important to shop but prepare shopping list so that you don’t get tempt to buy things you don’t really need. To save money, parents can also shop off-season or use coupons available on different websites to avail discounts. Parents can also choose smart ways to shop by comparing on different online stores before buying products.
Saving is necessary irrespective of anyone’s financial status. For enjoying a carefree future, it is necessary to save from present income to enjoy equal consumption throughout lifetime and fulfill the needs of a child as he/she grows up.
We wish your child follows his/her dreams and there may never be money constraints. Now you know how to save money for your little child to step up the ladder of success.
All the best for your first saving month!