Children Savings Plan - How to save for a better future for your children?
A parent’s role and list of duties towards a child is unending. You start worrying about his/her well-being right from the time of conception. The primary concern is always the health of the child. Then comes the schooling, college and higher education. It makes sense therefore to have a sizeable corpus at hand to ensure access to good education and a better future. In today’s highly competitive job market a solid educational background from a good institution is extremely necessary to give the much-needed thrust to your child’s career. It all starts with planning and saving. Only if you save today, can you invest in a better future for your child.
The key to every good investment plan is to ensure that you start early. But how do you invest in the future of a child who is still very young? It starts with a Savings Account. It starts with inculcating the habit of saving regularly and consistently, and slowly working your way up towards a substantial corpus for your child.
In order to make this process of saving and therefore investment fruitful, you must ensure that your financial goals are in place and realistic in nature. It should not burden your important and necessary expenses on a daily, weekly or monthly basis. Education, like any other sector is not free from the effect of economic and financial inflation. When looking at a popular course in a reputed college, the cost of securing admission can prove to be quite a financial setback. Therefore, an education fund, which creates a monetary support for education only, should be put in place as early as possible. Doing so via a Savings Account for your child is an intelligent way to get started, and provides instant liquidity when needed as well.
The key points to keep in mind while investing for an education fund:
- Start the investment as early as possible: the timeline of the investment process is of utmost importance. If your child is a 4-year-old and will require a lump sum amount of money for higher education, in another 13-14 years, it gives you ample amount of time to space out your investments and saving pattern. This reduces your current monetary burden, while ensuring that the amount saved is pretty big. If you start saving early, chances are that you would have saved enough by the time the funds are actually needed.
- Be regular: If you dream of a brilliant career for your child, or a bright future overseas, then the habit of saving needs to be imbibed from the very outset. Whether it is a small sum you start with and then increase year-on-year, or one that is consistently invested over the years, it will always lead to a good outcome if you are regular.
- Identify goals: Know what you are aiming for and plan out how long it will take to achieve. Focus on both short-term and long-term goals to keep yourself motivated in the near future and beyond.
With these ideas in place, the process of creating a fund for your child’s education should not be a daunting task. Tiny steps towards long-term financial planning can certainly help create the corpus that is needed. Doing so with a Savings Account from HDFC Bank is also simple. You can now open a Savings Account right now with InstaAccount.
Click here to begin with your digital journey for a new Insta Savings Account
Want to read more on how a Savings Account will save better for your future? Click here to read more.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.