Investment: How can you save for your Child’s Future?

Investment: How can you save for your Child’s Future?

The Need of right Investment for your child’s future

In the coming years, the advancements are going to take a major leap. Be it studies, jobs, the way technology is advancing, our children will experience a wholesome new world very soon. Not just the experiences, the costs involved in giving the right exposure to our kids are also taking a major shift.

Being parents is the most wonderful gift for us, but it comes along with Increased expenses. As parents, we all do the best for our kids, starting right from clothing to the various worldly experiences.

I remember the cost of advanced vaccinations, always made me wonder that I need to create the right corpus for my kid. Being a working mom then, I had to look out for the right daycare with modern day facilities and the right care for my baby. Slowly, the search started for a preschool, that gave the right experiential learning that my toddler wanted. And now, after a lot of research, to get into the best formal schooling, the expenses are rising.

Related: Tips for Money Management in Kids

I feel, Not just the education, various celebrations, lifestyle changes, travels, games, clothing, all have taken a surge, from what we experienced in our generation. When I look down the next 18years for my son, all of these expenses will only increase, maybe at the rate of 10% or even more when the higher education starts.

So, what have we done to secure our Child’s Future?

A close watch at the soaring expenses requires a strategy to invest the money for our kid’s longterm goals. To meet each of these goals flawlessly, we need to create a separate fund right from the time when family planning starts.

What do you need to plan wrt investment options for a child’s future?

With the way Inflation is trending, to give our children a good future, it is very important to have the right Investment and save for your child's future. #investment #futureplanning #saving #childsfuture #savingforkids #rightinvestment #PPF #sukanyasamriddhischeme #childplans #childschemes #equitymutualfunds #mutualfunds #terminsurance #reliancelifeinsurance

1. Choose the Right Child Plan Schemes:

Looking for the right investment avenue is very important. While you may find the compounding magical, simply investing in FD, is subjected to low returns, with interest incomes being taxable.

  • Various Child plan schemes, PPF, and a balanced Equity Mutual fund (for long term) are some of the best options you can consider for your child’s future.
  • Sukanya Samriddhi Account is a great option if you have a girl child due to better returns (though Interest rates may vary) and tax-free interest income.
  • Also, to have a secure future for the family, the plain vanilla Term Life Insurance plan is a must.

2. Start Investment Early:

That’s the key. We started a separate child fund, right after our baby was born. Many might think that there is no need for that, but I would say, start calculating the child expenses for the next 10-15 years and you’ll understand the necessity. Simply factoring in the inflation for education, maybe at around 6-7%, for the next 15 years (basis your kid’s age) will open up your eyes. Don’t panic when you see that a higher education degree might cost you more than 20lacs down the line. This is why we need to start investing at the right time, in the right fund/scheme.

3. Short term and Long term goals for Investment:

Instead of going for personal and education loans (which ends up burdening our lives), fix a certain amount that you can start investing. Have the right mix, partly for short-term goals for your child and majorly for the long term goals. The major expenses come in the form of Education and Marriage. Hence, our long term plans should be able to beat inflation in these categories. So, for Short term goals (with fewer expenses), one can have more investment in Short Term Debt funds, while for Long term goals, have a right exposure in Equity funds, Gold and other avenues.

For us, as parents, I’m sure, nothing is bigger than seeing kids achieve their goals. Hence, it is imperative that we look at creating Child’s Fund seriously. Instead of picking any product, understand the real benefits it provides and also ensures that it matches your child’s long term plans.

Happy investing!


Quest to live the life surrounded with the charming little bundle's of joy. When they speak, I sing, When they smile, I rejoice , When they hug, I hold them never to lose, Such is my passion for these Gifts of God.This love urged me to navigate separately from my Travel Blog & establish an "All-In-One" Blog for budding mothers. Mum's have multi-tasked this world ,with all her professional commitments , she still makes an extra effort to be a loving, caring and be an intellectual mommy! Cheers, for me too come from the same fraternity, post having a superb academics & close to 8 years of professional experience and blessed with a little one "who has indeed changed my life from Autumn to Spring";)

This Post Has 11 Comments

  1. CJ

    Thanks for sharing this

  2. Amrit kaur

    Yes it is necessary to plan for future requirements of kids in advance by investing rightly. These pointers are really helpful.

  3. Reetuparna Saha

    These are some fantastic tips to invest in a child’s future. Indeed such kind of investment is important to aid education and career of a child as they grow.

  4. Neha Jella

    I’ve already started saving money for the secured future of my child. Blogs like this really motivate me. Thanks for writing a blog on such an important topic.

  5. Prerna Sinha

    It is important or keep our kids future safe. And I have started planning for it already. These tips are amazing and effective. Thanks for sharing them

  6. Khushboo

    It is really very important to plan for investment for kids for their future. All the tips are really helpful

    1. Papri Ganguly

      This is an insightful post. It is really helpful for someone who is looking for investment guide for Kid’s future.

  7. Snehal

    I agree with you. If one is thinking to start saving for their childrens future then they must start saving very early!

  8. Sajid Akhter

    Hi Jhilmil,

    Great post. It is very important for parents to plan the child’s future. They need to cover all the vital aspects of their life and invest accordingly. Your suggestions in this post are very helpful.

  9. Deepa Shri Rajan

    Vowww this is such a useful read. This is a must read for today’s young parents . Every information you have shared is a must follow too. Lovely reading through

  10. Dipika

    Very informative post, financial planning and security is must for everyone today. Nothing better than saving the future of our kids with right instruments and planning.

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