Smart Saving Plans That Can Secure Your Child’s Future

When Arushi 28 and her husband Dipen 30, found that they were expecting their first child, they began to wonder if they really should start saving for the baby or not? Saving on behalf of your child is really a great idea and I am sure that there are lots of parents out there who are trying to find the best means to secure their child’s future. Saving for your baby today is a precious gift for their future as they can have some savings in hand when they start their adult lives.

Smart Savings Plan for Child Future

When your finances are tight and saving is a big challenge, long term plans can be a burden for parents. So where should you invest and how much should you invest? Let’s discuss some important tips to help you get started with some savings for your child.

Start early: If you start saving some little money for your newborn, then even a little investment will have time to grow into a substantial investment. For e.g Rs 50 a month over a period of 15 years at 5% interest will also yield a saving that may result into over Rs 13,000. So, even a little savings can make a great impact in future.

Take advantage of tax benefits:  If you are interested in saving some amount for your child’s future education, then there are various child saving plans or educational schemes that offer tax rebates and are good options for savings. But before making any investments, talk to your financial advisor so that you can understand the benefit of each option to determine the best avenue.

Invest regularly:  Start with a small amount of investment every month and after one or two years, increase the deposited amount a little bit. Small increments with not affect your monthly budget, but the increased amount will add up substantially and turn to a big savings once your child starts to go to the college.

Equity markets: To secure your child’s better future, you should select an ideal portfolio that consists of Equity, Debt or Gold. But this can be a daunting task and many parents are unwilling to invest their savings in the stock market due to its volatile nature. But a long term equity plan can help you to meet the required financial goals once your child grows up. If you have a good understanding of share markets or if you have a wealth manager assigned, then investing in equities though stock can help you to make more money within a short period of time.

Teach your kids about money: Children who are offered everything without them having to work for it do not understand its value.  So it is best to involve them in the process. Give a little amount of money every month and ask them to spend some and save some for future. So when you plan to buy something for them, ask them to contribute from their savings. This will help them learn money management skills that will have a great impact on their financial futures.


Having a plan to save some money soon your baby is born will produce the best results and make a big difference when they are grown up. Whether it is funding their education or having some early savings in life, saving for your child is the best gift for them that can make them financially stable.