After being blessed with kids, securing children’s future financially becomes the first priority of every parent. It doesn’t matter whether you are a married or a divorcee or widow or a lone parent, securing your child’s future is your responsibility and that makes a huge difference in your child’s life.
Heavy education costs can not be borne without proper planning, you need to be proactive in this matter. Many a times when I see my little daughter doing her homework, I get surrounded by hundreds of thoughts all relating to my daughter’s future. I earned my MBA from a well known university paying heavy fees and I know it was one of the most terrible time for my parents when they got to know I need to pay a fat amount of U.
Why don’t we be proactive rather than being reactive in such an important matter? Why don’t we start planning right away so that paying fees for getting good education doesn’t become a problem for our children?
Let’s discuss in detain, how can we secure our children’s future financially.
1. Estimate Future Costs
If you are going to secure your child’s financial future, it includes his/her education, marriage and other needs. So you need to estimate an amount that how much you need to save for your child’s future. Keep inflation in mind whenever estimating future needs. Depending upon the future needs, you can take decision what actions to follow.
2. Invest In Child Education Plans
As far as education is concerned, there are many child education plans that provide good returns on your investments and make sure that you get the required amount at the time when it is actually needed.
Consult your financial advisor if you have any or go out and take advice of people who are familiar with finance. I would suggest you to go to a financial advisor who can give you a neutral advice without favouring any company.
3. Make Provisions
It’s not always necessary to invest in some child education plan to secure your child’s financial future. You can make provision from your regular budget and invest a stipulated amount in various investment options which yield high returns. Make sure that you invest this money in some non-risky investment option as it’s for your child’s future. You need to make sure throughout the time until your children finish their education that the money you keep aside for your children’s financial future is not used for any other purpose.
Remember, it is a provision that you are making.
4. Educate Your Children About Finance
It is not only you who can do something to secure your children’s financial future, even your children can do a lot. At some or the other point of time, your children have to take certain decisions which directly affect your financial position.
Your children should be at least aware of what financial implications their decisions will have on your bank balance. You need to educate your children right from their beginning years of thought process development. Read Rich Dad Poor Dad to understand how should you educate your children on finance.
5. Additional Source Of Permanent Income
This is one of the most difficult but the most effective way to secure your child’s future. Develop an additional source of income. This source can be anything, part time work, blogging, marketing, investment income or anything that yields you some cents. Invest this additional income in the above mentioned investment options, bonds, fixed deposits, online deposits, stocks, security plans, mutual funds and other investment plans.
This will make your life easy and you will not have to cut out your monthly budget to secure your children’s financial future.
It is not a big deal to secure your children’s financial future, all you need to do is think early and take actions. Being proactive definitely helps rather than being reactive after situation arises.
Feel free to ask any questions and share your thoughts. How will you secure your children’s financial future?
Image Courtesy – Flickr, Star of Hope International