How to do the Right Financial Planning for Your Child’s Future?

Jul 10, 2018 | 1 year ago | Read Time: 3 minutes | By iKnowledge Team

With soaring fees for education, sports, and other extracurricular activities, early investment planning is the great way to ensure your child gets the best all the time. This means, investing in small savings instruments won’t be sufficient, as inflation will leave back only fewer returns. That’s why, when it comes to planning for your child’s future, having the right investment plan for the child’s growing years will help protect your child financially, even when you are not around.

So, here’s our guide on creating wealth to empower your little one’s dreams, which you can follow easily:

Create a Financial Plan

Planning is crucial no matter which life stage you are in. Start investing early on for your child’s future and stay invested in market-linked products to get good returns in the long-term. If you are unclear about your decisions, seek help from a financial advisor who would advise you taking into account the inflation and its effects on the value of returns. At Aegon Life, our financial advisors will guide you to make the right choices keeping in mind your requirements. This way you can monitor your child’s and your future financial milestones at each step. 

Financial Plan

Set Up a Goal

Set a financial goal while keeping in mind your child’s education, your retirement, and other financial milestones. Investment goals vary from person to person and can be categorized as short-term and long-term goals. Short-term goals include your child’s school education, tuition fees, activities etc. whereas long-term goals will include money required for undergoing professional course abroad or initial capital amount to start a business or planning for your child’s dream wedding, or purchasing a home.. After setting your goal, work towards attaining it by investing in the right instruments.

Set Your Financial Priorities

Choose the Right Investment Tools

Equity, balanced and debt funds are good options for accomplishing short-term goals, whereas long-term goals can be achieved by investing in ULIPs. Unit-linked insurance plans or ULIPs are good investment options for your child’s long-term future. You can start early by investing in a plan like iInvest wherein you are can start with an amount as small as Rs. 2,000 per month and earn benefits

Equity also helps generate wealth in the long term. Choose a mix of equity and debt funds or equity-oriented balanced funds to maintain a good balance in your investment and shield it from short-term fluctuations.

 Always choose investment tools as per your income, and risk appetite. At the same time avoid investments that possess a high risk and offer returns that might be fluctuating.

Investment Plans

Secure Your Child’s Future with an Insurance Plan

Often insurance is associated with savings which is wrong. Insurance is not only a savings option, but it is a plan you purchase to protect oneself financially. If you have a term insurance plan for yourself and spouse extend the cover to your child as well. An insurance plan such as Aegon’s Life’s iMaximize will help you secure your child’s future and help them turn their scribbled stories into successful ones. This plan provides partial withdrawal facility, death benefits, and tax benefits.

Child  Insurance Plans

The Bottom-Line

Investing in long-term instruments like unit-linked insurance plans, fixed deposits, SIP mutual funds, public provident funds, and other such financial tools will provide good returns over a long period. Remember, what’s important is to make investment from your savings each month a habit so can secure your child’s tomorrow.

Advt. no: IA/Jun 2018/4134

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