Suspense Crime Sach Ka Dam
Children’s Day: Children’s Day is being celebrated across the country today. Everyone worries about their children. Every parent wants their children’s financial future to be strong and they never have to face a shortage of money. If you work on your children’s financial future right from birth, you can easily create a large fund. Let us know what you need to do.
Find out the goals
In the first step, you identify your goals.. these can include higher education, recurring education, school trips, bike, marriage, property, etc. In the second step, you have to prioritize your goals according to time and importance, so that a person can go after the right goal at the right time. After this, in the third step, you have to estimate future expenses according to the current cost and inflation.
Find out about future expenses.
For example, your goal is to educate your son in a top business school after he graduates from college in 2030 and you want to be financially prepared for this. Now the current fee of a two-year MBA program in IIM is around Rs 23 lakh. Now this fee has increased at a rate of about 12 percent per annum in the last two decades. Now on doing the calculation, we will find that this fee will become Rs 64 lakh in the year 2030. Similarly, for each goal, we have to calculate the future expenses according to the current cost. This will let us know how much money we will need for expenses in the future.
There are 2 types of goals.
If you have some immediate goals, you can invest in savings account, FD, or liquid and short-term debt funds. For long-term goals, you can use a combination of equity mutual funds, gold, and fixed-income instruments like Sukanya Samriddhi.
Keep an eye on inflation.
The most common goal in the financial planning of children is higher education. If general consumer inflation is growing at a rate of about 7 percent, then education inflation is growing at a rate of about 11 percent. Now you need an investment option where you are getting returns equal to or more than this inflation rate. If parents are investing for long-term goals of 10 to 15 years, then they can be more aggressive. If parents want, they can invest the entire investment in equity. Here the scope of getting better returns increases significantly.
This strategy is very interesting.
There is a very common practice in America. Their, parents, grandparents, uncles, aunts, etc. all contribute some amount every month to the education fund for all the children in the family. Every person can contribute a different amount. This adds up to a lot of contributions. This little money together becomes a big fund.
