Are You Saving Enough for Your Child’s Future? Plan it with SIP
Having a child is the greatest happiness in life. But, the responsibility to make your child’s future brighter is greater than that. Every parent has a desire to provide their child with the best of everything, whether it’s schooling, higher education, or fulfillment of the other requirements.
Have you ever thought that how you are going to plan your child’s future? How will you manage the future expenses with the increasing rate of inflation? There are so many calls which should be taken now before its too late because the growing inflation may hinder you to provide the best things to your child efficiently.
However, there are some of the major plans, like higher education and other such expenses which you need to be well-prepared so that you did not face problems in the future. To provide your child with the best facilities in his/her life, you need to start making a definite plan today. It is quite possible to manage the other things at the moment when they are required, but it's hard to manage finance all of a sudden. Therefore, planning all the future expenses always helps to bring efficiency in the process. Systematic Investment Plan (SIP) helps you to be ready for all the expected future costs & bear them effectively. You can start saving a small and regular amount today so that you can effortlessly be able to pay your child’s high expenditures in the future. The essential needs are education and marriage. Let’s take a roundup that how much money you may require in your future to fulfil the requirements of your child at his/her different ages:
(**The future requirements of money mentioned in the below points are based on assumptions only and computed after considering the factors like inflation.)
Under 6 Years : You may require a total of Rs. 1-5 lakh for the purpose of early learning of your child. If you have a child under one year, then you must be planning for his/her playschool admission, and after that, you need to get him/her admitted into a school also. Altogether, with an approximated inflation rate of 6%, you may require a fund amounting to Rs. 5 lakh.
6 to 13 Years : Moving forward when your child will grow older, the requirement will increase accordingly, and the inflation will also get accumulated to grow to some extent. Therefore, the burden of the expenses will increase more on you. As per the estimation, you may require almost Rs. 5-10 lakh for the elementary education of your child.
13 to 18 Years : Nearly after 10-12 years from now, your child will be older and sensible. The expenses for his/her studies will be higher when he/she will be in the secondary education. The corpus of Rs. 10-15 lakh may be required to spend upon the secondary education of your child at the time he/she will be at the age of around 16-18 years.
18 to 24 Years : As your child will attain the age of maturity, you will become older and reach nearer to the age of retirement. So, along with planning the future of your child, it is essential to plan your retirement too so that you may enjoy a tension free retirement age. When your child is at the age of between 18-24 years, you need to think about the best higher education plans for him/her, and it may cost you nearly Rs. 20 to 25 lakh.
So, you will require a considerable amount of money at each stage of your child’s future planning. And for the best way out, SIP in the most suitable equity fund can help. Moreover, after the higher education of your child, you will also need to think about his/her marriage.
24 to 29 Years : Every parent plans a lavish wedding for their child, and for that a huge amount of money is required. An amount of almost Rs. 35-40 lakh may be needed in planning a good marriage party for your child.
The Systematic Investment Plan (SIP) in the mutual funds has proven its efficiency in making the financial dreams real. So, for all the financial plans, you can attain the success in the best possible way through SIP. You can save and invest as per your future monetary requirements. The below table shows you that how much you can earn through SIP:
Therefore, in the above table, you can easily see that with the time the value of your investments grows amazingly. That is why SIP is one of the best ways to create wealth for all types of future financial requirements. The earlier you start, the larger the benefit you get.
- LTCG Tax Is Not As Negative As it Seems; Here’s Why?39954 min read Jan 01, 1970
- Sensex Plunges Over 1000 Points; Should You Buy or Hold Your Investments for Correction?40883 min read Jan 01, 1970
- Sensex Dives Nearly 840 Points: Things to Consider and Experts’ Take41913 min read Jan 01, 1970