Don't make these 5 mistakes in the financial planning of children, you will get nothing but regret.
Child Financial Planning Mistakes: Be it investment or savings, if it is not started at the right time, then its full benefit is not obtained. And if you commit these 5 mistakes, then you get nothing but regret. So, don't make these mistakes in the financial planning of children (Child financial planning) even by mistake.
Child Financial Planning Mistakes: Every parent wants to give a better tomorrow to their child. This is the reason why they start worrying about the future of their children and then start investing and saving for it. However, be it investment or savings, if it is not started at the right time, then its full benefit is not obtained. And if you commit these 5 mistakes, then you get nothing but regret. So, don't make these mistakes in the financial planning of children (Child financial planning) even by mistake.
Mistake number-1. Starting late
The most important thing in investing is time. The longer time you invest, the better the returns will be. One thing to keep in mind is Compound Interest. In this, you get the benefit of interest on interest. This process continues year after year. In such a situation, it is important that you start investing in the future of children as soon as possible and do not delay.
Mistake number-2. Estimating future expenses
This is the most difficult task, which parents do not do intentionally, but it happens by mistake. In India, especially 2 things are taken care of for the future of the child. The first is the child's education and the second is his marriage. In such a situation, you have to make a better estimate of when the child grows up and he will need money for education. You also have to correctly estimate how much money can be spent for his marriage. Try to save or invest more money than expected, so that there is no problem.
Mistake number-3. Inflation should not be forgotten
Inflation increases every year, due to which things become expensive. When you have to think about investing or saving for 15 years or 20 years, then keep inflation in mind while calculating it. The amount of money you get for education today, you will not get that much education after 15-20 years.
Mistake number-4. Choosing the wrong investment instrument
It is important to choose the right instrument for investment. Suppose you are investing keeping in mind your daughter's marriage, then you should choose the investment destination accordingly. You can invest in Sukanya Samriddhi Yojana, which can arrange for both your daughter's education and marriage. Do not invest money in FD or start thinking of earning from the stock market. If you want guaranteed returns in a fixed period, then choose the instrument accordingly.
Mistake number-5. Not planning your own retirement
Most parents make this mistake. Parents get so worried about their children's future that they forget to think about their own future. Many parents do not save or invest money for themselves thinking that their son will become the support of their old age. Not thinking about your future is the biggest mistake. Along with taking care of your children's future, plan for your retirement as well, so that there is no problem in old age.
