Financial Planning for Children

Read about the various important expenses at different stages in a child's life right from birth to adulthood. Find out about all the expenses that will be incurred right from the stage of planning a baby, after the birth of the baby, health of the baby, admission in preschools, admission in schools and higher education.rnBringing-up child as a successful and responsible individual is a dream of every parent. Almost every parent sacrifices his or her own desires and wishes to make their child's future secure. Many parents also face lot of hardships to save money and fulfill their child's dream. Parents even stop caring about themselves when it comes to the career and future of their child. However, planning the future of children is incomplete without financial planning for them during each and every stage of their development. Have a quick look at different phases where financial planning is needed for growth, development, better career and better future of children. Planning a BabyrnFinancial planning for the child begins even before the birth of the child. This is a stage where most of the couples start financial planning even before they conceive. Especially, when the mother is working and household expenses are born by husband and wife equally. In such situation many parents decide to save money when expectant mother takes maternity leave so that they are able to manage the expenses properly. At the same time finances are required to carry out tests during pregnancy, medicines and to pay the hospital bills after mother delivers her baby. Parents also need to plan for extra money which may be required if cesarean-section is done or any other complications arise during pregnancy. In certain cases parents also need to arrange finance when they are not able to conceive naturally as they have to spend lakhs of rupees on treatments like IVF etc. Birth of BabyrnWhen baby is born, parents are completely in a new world and their new world is none other than their baby. They want to provide their baby with the best things available around the globe. Right from the baby's cradle, baby's clothes to baby products everything is bought with extra care. In such case parents need to make sure that they save some money to fulfill these requirements also. Baby's HealthrnNewborn babies require special care. Newborn babies are very sensitive and as such are very prone to minor infections. Therefore parents also need to spend money to take care of their baby's health by availing proper treatment from pediatricians. Daycares, Creches and NanniesrnNormally working mothers prefer to take leave from work to take care of their babies for at least 6 months to 1 year. Once the baby becomes older they decide resume work. Therefore, to continue work, mothers need to take services provided by daycares, creches and nannies. Parents need to take care of such expenses also. However, in India many working mothers depend on their mothers or mother-in-laws to care of their babies when they are working. Admission in Pre-SchoolsrnAs the baby grows-up parents need to admit them in pre-schools. It is the time when parents introduce their child to a new world. As such it becomes important for them that they enroll their child in a pre-school which prepares their minds for entering schools for primary education. At the same time they want to ensure that the environment is safe and hygienic. To provide all these facilities to their toddler parents have to spend a good amount of money on the pre-schools too. School AdmissionsrnGetting educated from a good and reputed school is the first step towards bright future. However, taking admission in good schools is not so easy. Along with the payment of donations of schools parents also need to spend money on school fees, tuition fees, books, extra-curricular activities etc. Therefore, parents need to plan finances properly for enrolling their apple of eye in good school. Higher EducationrnTo make sure that child chooses one of the best career options, it becomes mandatory for parents to arrange finances properly for the same. However, these days many insurance companies are providing excellent education plans. Such insurance plans ensure parents that financial problems do not become a hurdle for providing appropriate education to the child. Today's competitive age makes it obligatory for all parents to choose proper plan for their little wonder so that he or she can choose a career option according to his or her desire. Prospective LifernMany Indian parents also plan for the prospective life of their child. Especially in case of female child, parents are very particular about saving money. This saved money is thus utilised during the wedding ceremonies.rnOnce children get married parents are free from their responsibility. However, a new financial planning begins with the end of financial planning for children. As the couple starts heading towards old age, they have to think about the availability of finance during this stage. But this issue can also be taken care by selecting a proper pension plan. Thus, financial planning has become easier due to the growth and development of insurance sector in India.