Financial Planning at Various Stages of Your Child’s Growth


Every parent wishes to bring up their child in the best way and ensure that the child is a responsible individual. They take a number of decisions to make the future of their child secure. But planning for the child’s future is incomplete without proper financial planning during each and every stage of development.

By the time the child is a responsible and financially-independent individual, there are several stages that need to be taken care of by the parents. Parents need to provide for every expense right from the birth of the child upto their education and marriage.

Various stages of financial planning for your child

Wealth creation does not happen overnight. Parents need to start early and ensure that they are ready for every stage of their child’s life. Some of the significant milestones that each parent looks forward to include the following:

  • Daycare


The first stage of financial planning begins with daycare when the child is around a year old or more. This phase comes sooner for working mothers who resume work within a few months of their delivery. Either parents send their child to a daycare center or they hire a babysitter to look after the child throughout the day. In both the cases, the expenses will have to be taken care of by the parents.


  • School


This is the stage when parents introduce their child to education. Considering that the cost of education is constantly on a steep rise, parents may have to begin their savings and investments right when the child is a few months old. Every parent wants to ensure that the child receives only the best quality education and it does not come cheap. Along with the payment of admission fees, parents have to incur a number of other expenses related to books, uniform, co-curricular activities, coaching fees, and transportation charges.


  • Higher education


Getting an admission into a reputed university is not an easy task. Many parents end up spending their entire life’s savings on the admission fee of their child into a good college. To avoid a last-minute financial crisis, parents need to choose a proper plan to set aside a particular sum each month in order to save for higher education of their child. As part of financial planning, they may set up a systematic investment plan (SIP), which will ensure that a certain sum is invested into mutual funds each month. Mutual fund returns are high and they carry the benefit of compounding of interest. As such, the amount invested will grow over the years and parents will be able to maximize their wealth.


  • Wedding


Weddings in India are a lavish affair and it costs a significant sum. In addition, most parents in the country take up the responsibility of their child’s wedding. They prefer to ensure that everything is well-planned for the same. If parents start saving and investing early, they get enough time to save a substantial sum of money for the marriage of their child.


  • Throughout every stage in life


As mentioned earlier, financial planning at every stage is very important, but one of the most important decisions is to secure the health of your child. No planning is complete without investing in a good life insurance cover, which will protect your child even in your absence. The life insurance cover is an investment which should be made at an early stage.

You need to keep in mind that everything you plan might not go your way and there might be unexpected expenses coming up while the child grows. You ought to be aware of your long-term goals and take appropriate wealth creation steps. Investing in mutual funds is a good option. With low risk and high returns, mutual funds ensure that your portfolio grows over a period of time. Mutual fund returns are higher than any other investment option, provided you remain invested for the long term. Consider all the investment avenues and take decisions that are favorable for your child.

In order to help you make the right investment choices, Angel Wealth offers an easy-to-use mobile application, which runs on an ARQ investment engine. The technology-driven algorithm offers tailor-made recommendations and is free of human bias. The personalized investment recommendation will enable you to invest anywhere, anytime.