Being parents of your newborn baby is amazing, you are so happy so happy, I am sure you can’t reveal.
Have you ever planned financially for your baby?
In this article, you are going to learn the financial approach you should take once your baby is born!
I have seen a lot of my friends on their first baby, but they have wasted their time and money, but not planned fruitfully.
We are here to learn from other person mistakes not to repeat the same mistakes again.
SO Let’s drive in:
Health is first, Initially, you have to add your newborn baby to your family health cover.
Add your newborn baby into your family health cover
You must add your baby to your family floater health cover, not wasting any time, that will cover both your baby health and your financial expenditure, which I am sure you are already drained out.
Have you ever search for an insurance plan for a newborn baby? You will find tons of option available online.
Open a separate bank account for your child
But its really important, having a bank account allow you to invest in several child based segments and create a financial portfolio.
Your child and his/her bank account also help you save income tax.
When you get a gift for your child in the form of cash, it’s a good idea to keep that amount separately in that saving account, which would be planned later.
I personally opened a PPF account for my son which is linked with the bank saving account, and parallelly I started a SIP in the mutual fund (equity) for my child future needs.
Also, read: What would be the salary of “housewife mom”?
Start a recurring deposit
Recurring deposit is like SIP, In recurring deposit, you must open with the fixed amount every month deducted from the linked saving amount (which you already opened for your child) on the selected date and in return, you will get the interest rate as similar to fixed deposit.
I suggest opening for a long-term perspective.
Have you ever calculated an average education expenditure annually for the common man?
I will tell you.
You spend 15 % to 20 % of your income on child education during the initial stage.
The percentage is climbing day by day, Opening of recurring deposit will help you find some better option for your child.
Frankly speaking, if you can afford a good school or college, you can get a better education.
I don’t want to discourage the parents but whats to help find more opportunity to get your finances in better shape and utilize for the future of your child.
Also Read: – 6 Insurance Mistakes to avoid (It works for Family)
Update your personal financial security
Every individual or smart human being hold a Life insurance or term plan.
Have you ever calculated the amount your family required after you?
The amount changes time to time, now a new member is introduced in your family, have you ever wondered, if your sum assured to not as enough as required, when your child turns 15, his/her higher education is about to commence.
So, its today you must update your life insurance plan according to your complete family.
Start investing in Gold (ETF)
Gold is one of the anti-inflation instrument, which will help the investor or individual to beat inflation.
On the other hand, in India child marriage is incomplete without GOLD.
The points if implemented will help you make your parenting journey smoother and your financial life better over the long term. There are small financial changes that will make huge changes for the parents of the newborn baby.
Also Read: Monthly Saving tips for House Wife