Children’s Day: 9 ideas to start investing for your child’s future

economictimes.indiatimes.com:

Developing a financial plan for children is crucial, as it ensures their long-term welfare, particularly when educational expenses are on the rise. Children’s Day serves as a call to action, making parents realise to prioritise financial planning for their children. Here are key aspects that parents must consider.

1) Financial Literacy
Early exposure to money concepts helps children develop financial literacy.

Understanding basic financial principles, such as saving, budgeting, and investing, sets a foundation for informed decision-making in adulthood. Teaching children about money fosters a sense of responsibility. When they are involved in budgeting their allowances or savings, they learn the consequences of their financial decisions.

Whether saving for a toy, gadget, or education, goal-setting teaches patience, discipline, and the value of money. Don’t leave them alone to handle investments alone, sit with them and help them understand to enhance their financial knowledge.

2) Savings Account
This is the first step into the world of financial journey. A savings account serves as an initial introduction to banking and the concept of saving money for your children’s future.

It cultivates a habit of thrift and encourages responsible financial behaviour in kids. By having their own account, children learn the basics of managing funds, understanding transactions, and the importance of setting aside money for various purposes, such as education, future aspirations, or unforeseen needs. To initiate their investment journey, you can introduce your children to products like FDs (fixed deposits) and RDs (recurring deposits).