While our children are inarguably the best thing in our lives, the fact stands—having them is expensive. From basic things such as food and clothing to more complex things such as education, a lot of our resources need to be invested in them if we are to see them thrive and become successful in life. All parents know that every shred of our financial sacrifice is more than worth it, but it can still put a strain on our lifestyle and our wellbeing if we don’t know how to manage money properly and cannot secure the funds to help our children along.
Luckily, with the right kind of planning, you can make it easier to invest in your kid’s future. Do you want to learn more? Then take a look at our best tips.
With a child in your household, you now have someone who is completely dependent on you for everything. While your first instinct might be to find insurance for them, it’s actually yourself you should worry about first because if something were to happen to you, they’d have a hard time managing without proper cover. You should seriously consider getting life insurance so you could help your family even in your absence, especially because there are plenty of good deals you can choose from today.
Now, having said that, child insurance policies are also immensely useful when it comes to planning for the future. Try to get a deal that will offer you flexible payouts that you can withdraw whenever your kid hits an important educational milestone, and that way you can cover those expenses with a lot more ease.
Don’t just save, invest
Having a savings account is great but unfortunately it might not be enough. If you want to give your child more, you should always consider investing because it’s the smartest financial decision you can make. You can always check out some investment property seminars if you want to learn how to do it successfully, especially if you want to be a better provider for your whole family. You can also consider investing in safe instruments that ensure long-term fix deposits to your account, or maybe even a PPF (Public Provident Fund).
Set them up with a bank account
While they might need nothing more than healthy food and clothes right now, children tend to need more as they age up. You have to start planning for their future expenses rather than focusing only on the ones they have now, and setting up a bank account for them is a good idea. Things like inflation can cause prices to increase, and you can never predict how the market and finances will fluctuate. So, start depositing cash here early on, and they’ll be able to use it once they turn eighteen and want to get into a college of their dreams. You should tell them that you have this account ready, but let them know it’s only there as an investment in their education.
Make sure your health insurance covers them
Medical costs can be obscenely steep, so before anything, make sure your child is covered by your own health insurance, and make sure it’s a good one. Things can pop up when we least expect them, and it’s our duty to be prepared for anything that might potentially endanger our child’s life. Try to get insurance that will cover first-year vaccinations and similar expenses, and help your child lead a healthy, easy life by surrounding them with good doctors.
Don’t always shower them with gifts
It’s natural that you want to focus on providing your offspring with enough money to give them a good life, however, to make that cash truly useful, you must also educate them early on. Teach them to value what they have, and don’t shower them with gifts all the time, especially if you notice that they tend to get bored of them quickly and demand something new. They need to understand that good things come with time and effort, and that they won’t always get rewards unless they apply themselves properly. Your love should be completely unconditional. However, material things have nothing to do with love and you don’t need to prove your affection with shiny toys.
Teach them how to value money
Another great way to invest in your child’s future is to make sure that they are the ones who understand money. They can start learning about it when they’re as young as five or six—simply teach them about basic coins and dollar bills and explain how money can be exchanged to get something they want or need. Give them a tiny allowance and let them experiment, let them spend it however they wish. If they blow it all within a day and then ask for you to buy them ice cream, don’t give in. They need to understand the value of what they have in their hands, and how easily it can disappear if they aren’t being frugal. It’s also a good idea to let them save up for the things they really want. If they see a toy that they’re dying to have, let them know that they can have it if they save up for it a little bit each month.
Increase your and your child’s financial awareness and plan for things in advance. As long as you remain prepared, your children can thrive and have a very successful future.