According to the Guardian’s report, published on January 24, 2013, the cost of raising a child has increased by 58% on average, across the world, since 2003. When it comes down to the expenditure, the Economic Times, in 2012, chalked out that a middle-class family in India would require an average of Rs.54.75 lakhs to raise a child from the cradle to college. Furthermore, a study conducted by Assocham revealed that inflation in primary and secondary education has increased by 169% between 2005 and 2012. Surprised?
Like most parents, when you decided to have kids, nuances in finance might have been the last thing on your mind. The role of parent to your little bundle of joy was your primary focus and now that the little ones are growing up fast, it is a good idea to start making some crucial decisions on financial investments, insurance covers and the much talked about cord blood banking.
Ways in Which You can Secure Your Child’s Future
There are three primary areas that you should seek to secure for your child – Life, Health and Future. It is important to start planning each of these areas at an early stage. Here are a few recommendations that might prove useful for you:
- Life: A sound financial plan for their education, daily care and other activities.
- Health: Medical Insurance cover and the latest Umbilical cord blood banking.
- Future: Getting Life Insurance to cope with any future uncertainties.
Financial Planning
- Investing in mutual funds is a great way to get the dice rolling.
- SIP and fixed deposits are a smart choice when there are funding problems. They are less risky and yield good returns.
- Opening a savings account in your child’s name and contributing a stipulated amount every month will prove immensely useful in the long run.
Umbilical Cord Blood Banking and Health
- This was a fairly alien concept till a couple of years ago in India, but is becoming rapidly popular.
- Collection and private storage of cord blood when the child is born is built around the possibility of its use either by the same child at a later date, or a sibling or another family member.
- Diseases such as lymphomas, leukemia, sickle-cell anaemia, aplastic anaemia, immune deficiency disorders in your family history doubles the chances of your offspring being affected. Cord blood could prove to be a life saver in such cases.
Insurance Cover
- Investing in medical insurance can save you extra stress during a health emergency.
- Getting life cover has the dual benefits in terms of both savings and security.
- A big advantage of child life cover is that the premium is relatively low because of the young age of the insured.
No matter where you start, the universal mantra is to start early. This will help you save more without having less money for everyday expenses.