Child Future Solutions
The birth of a child is one of the most important events in one’s life – other than the celebration; it brings maturity and responsibility to the parents. It also brings seriousness regarding our financial life and if we talk about priority of goals, sometimes Child Future Solution is even a shade above retirement planning.
There has been a paradigm shift in the thought process of people and generally they don’t make any distinction between sons and daughters. Socially their thinking may have changed but financially they still belong to that old school which is happy with buying insurance policies or some bonds in name of the children. Few new age parents have started buying child Unit Linked Insurance Plans (ULIPs) rather than money-back policies. But is it actually a smart strategy? The simple answer is NO. Emotional sales take place where investors take decisions based on their emotions.
As a parent you want to be the pillar of strength and support for your child, making sure that his/her future plans remain undisturbed even when you are not around. There are two major aspect of Child Future Solutions, i.e. Child Education & Child Marriage and both are important in once life.
“Secure your child’s future, put a plan in place”
What scares the Indian parents the most?
There are only 2 major factor’s that scares the parents most, it is the cost of education & the cost of marriage.
The cost of education in India is no child’s play. Starting from kindergarten, that can cost you anywhere between Rs 60,00 to 2 Lakh per year. Even pre-schools are costing a bomb now as most of them doubles as creches providing day care facilities to working parents.The cost of education in India is increasing at a fast pace. From primary to secondary to higher education, parents are increasingly finding it difficult to meet the growing fee structure and other costs associated with education.
“Education costs are inflating at an above-normal rate, and the returns on your child education fund need to out pace inflation.”
According to National Sample Survey Office (NSSO), between 2008 and 2014, the average annual private expenditure for general education (primary level to post graduation and above) shot up by a staggering 175 percent while during the same period, the annual cost of professional and technical education increased by 96 percent.According to rough estimates, on an annual basis the education inflation is about 10-12 percent.
Similarly, Weddings are a grand affair in India and require a lot of planning. While we have all dreamed about having a fairytale like wedding in some point in our lives, we often forget or neglect the planning and preparation that it requires. However, making your dream wedding a reality is not as difficult as it seems, especially in the current times. The Indian wedding industry has been growing at a fast pace and the average Indian couple spends around Rs 10,00,000 to Rs 20,00,000 on their weddings. There are various other big fat Indian weddings with a budget that runs in crores.Wedding is often a major life goal and it is extremely sensible to make investments well ahead in time. The investment options for people who are planning or saving for their wedding are endless.