With the increasing cost of education does a question haunt you about your daughter’s marriage? Since, its a daughter, so you must be worried about her marriage as well since her early days. So, the question is How to Save for Your Daughter’s Education and Marriage?
How to Save for Your Daughter’s Education and Marriage?
With the fact that the cost of education and other child care expenses are increasing day by day, you will see a lot of investment products in the market. You will see various “child care” investment products in the market with very attractive offers such as insurance policies, mutual funds, etc. And, most of the products claim that it will take care of most of the child care expenses.
Many of the times, you think about buying insurance policies. By the time you kid will grow for her education or marriage, you plan to use the maturity value of those insurance policies. However, before you recklessly invest in such financial products, it is crucial to understand their viability for you.
You are already worried about your daughter’s future. You see highly lucrative and confusing financial products in the market, hence, end up buying costly ULIPs. At times, these financial products come with high charges. Not only that but, you also pay much higher commissions to the agent who sells you the plan.
Your choice of financial product should have a balance of insurance and investment. Hence, while planning your financial goals, it is crucial to include a sufficient insurance cover as well. Because there must be a cover for the breadwinner of the family. Otherwise, any mishappening to the breadwinner could lead to a potential setback to your child’s future goals. It is important that you choose your investments and insurance separate. Insurance is to protect you and your family from financial trouble. And, by supplementing this cover with the investment, you create your children’s future more secure and comfortable.
Points to Keep in Mind while Planning to Save for Your Daughter’s Education and Marriage:
- Evaluate your children’s future expense needs such as education overseas or throwing a party for your child’s birthday or your daughter’s marriage, and then start planning your financial goals.
- It’s a good idea to start saving and investing early. An early start will let you create a sufficient corpus for the fulfillment of your children’s desires and ambitions.
- Also, make sure, before you start any investment, you check your risk tolerance level such as your Income, Expenses, Financial responsibilities etc.
- Do not forget to check risk appetite as well such as Age, Past experience etc.
- Avoid mixing the funds saved for your other priorities like Retirement, Medical expenses, Housing rent etc. with your child’s education or marriage fund.
- Do not get into the trap of the financial products’ name & offerings. Make sure you evaluate the characteristics and viability of the financial products as per your financial goals.
- Choose a good balance of insurance & investment to protect your children, in case of any mishappenings.
It is possible to fulfill the dreams of your children without sacrificing your personal desires. For this, you just need to make sure that you go for a sound financial planning and suitable asset allocation well on time.