The concept of raising children has undergone significant changes in the last few years. Economic, social and cultural factors are often responsible for this. Today women work. They are also involved in family decisions. Apart from this, the parents begin preparing for his future before the child is born. Due to small families, parents also focus on little nuances of child-rearing.
So that there is no problem left.
Every parent dreams of a better future for their children. But, just dreaming you cannot give a better future for your children. For this, it is essential to adopt the child marriage insurance plan and the balanced attitude towards investment.
In recent years, the cost of raising a child has increased significantly. For example, the cost of education has started to skyrocket. The current trend indicates that people are sending their children abroad for higher education, which is a significant expenditure. In the coming time, this cost is expected to increase further as a result of demand and inflation. Besides, our social texture also inspires saving for the education of the child.
Investment in Child Plans
If you want to ensure the future of your children, there are a number of child plans of different companies available in the market. However, before investing in a child plan, it is essential to understand some aspects. Before choosing a marriage insurance policy India, we must weigh the potential of our income and savings. Then, in the child plan you are taking, check that it is able to fulfill your child’s future needs. Will it be able to meet your child’s financial obligations in the event of untimely happening with you?
Make an investment plan
Suppose you have a daughter or son, whose age is two years? You want to do this in the Master’s Business Administration (MBA) at the age of 22. Let’s assume that the current MBA fees are 10 lakh rupees and 8 percent is the rate of inflation annually. That is, when he is 22 years old, the cost of the MBA will be 46.61 lakhs. You should plan his studies according to him accordingly.
How much investment?
If you make money in the mutual fund from the age of 2 years and get returns at the rate of 12 percent, then you have to invest Rs 5067 per month for this amount.
If you start investing from the age of 8, you will have to invest around Rs 11,271 per month, while at the age of 12 you will have to invest Rs 20,805 per month. Therefore, for the pleasant future of the children, the planning should be started as soon as possible after her birth. It will not burden you more on the budget and will be easy to do in fund managers.
Take advantage of income tax rebate
You can get a discount under Section 80C of income tax, through a child plan. Apart from this, the amount received on maturity under Section 10 (10D) of Income Tax is also exempt from income tax. If you have more than one child, then you can take a plan in which money can be saved for both children.