“Failing to plan is planning to fail". This cliché is pertinent in all walks of life. But when it comes to something exceptionally dear to you, like your child’s future, planning becomes imperative. Today, a steady and engaging career, by and large, comes at the back of heavy investments — making it essential for every parent to stay economically equipped to deliver when the need arises. Having a broad-level plan in place and choosing the right investments as you go along can ensure that none of the crayons go missing from your child’s palette.

Your investment choices could depend on your child's age. For a 5 year old, you may have about 12 years to save. For a child who is a little older, the savings period available decreases and hence the monthly investment outflow might go up. Starting early helps you build up larger sums and puts lesser load on your finances. So if you haven't planned enough investments for your child, its time you started.
Here's a list of options to consider while planning for your child's tomorrow:


Children's Savings Account — Well begun is half done

The sight of a piggy bank always evokes a sense of nostalgia, for everyone had one in their childhood days. Every penny that was tucked into it was cherished dearly. The reward of an overflowing piggy bank came in the form of toys or sweets, and it was always a memorable event that taught the child the value of savings.

Children's Savings Account is a contemporary way of making your child understand the benefits of saving money. The habit of regular saving, and watching your money grow can help your child learn vital lessons of life. Over time, do introduce your child to Deposits and a variety of other investment tools. These early lessons can go a long way in helping your child earn rich dividends in the future. So, a Children's Savings Account is a great way to start saving and also assures lifetime of benefits for your child.


Deposits Schemes

Opting for Deposit is a simple and common way of going about investing for kids. Fixed Deposits involving parking a good lump sum for a customizable period of time. Recurring Deposits works by gradually building up the blocks for your child. The financial stability and assurance that such deposits promise is a central reason for their popularity. You also enjoy tax benefits under the Indian Income Tax Law, which is the added incentive.


A ‘Bond’ of Safety

Children’s Bonds are suitable for savers who are looking for tax-free investment for their child’s future. You can invest for a period of five years and stay assured about the returns! Investment in Bonds can be made by the child’s parents, guardians, grandparents or even great-grandparents. The only restriction here is that this investment can be made only for kids under the age of sixteen. You can cash in before the stipulated term but at the cost of some penalty. These bonds are a transparent and hassle-free mode of saving for your child.


Child Investment Plans

Child Investment Plans have become a vital mode of savings today as it helps take care of your child’s educational and other needs in the future. The freedom to customize the tenure of the plans and the monthly investments have made these plans a convenient option. They provide the child with a comprehensive life insurance coverage along with the extra edge of financial support for their education and career.


Systematic Investment Plans (SIPs)

SIP broadly refers to systematic investment in a mutual fund of your choice. Though SIPs, you can invest in a variety of companies ranging from IT to Pharmaceuticals, and enjoy a diversified portfolio. The bright side of SIP is the liberty to customize your portfolio and invest in small amounts every month. SIPs can be your gateway to explore mutual funds and it also helps inculcate the habit of disciplined savings. And before you realize, you can amass a handsome corpus. Starting with a small investment in such schemes can give you a fair idea about how they work. And once you understand their functioning, you can increase your investment on a gradual scale. You can also consider injecting a lump sum when there is a surplus. All in all, SIPs are ‘smart’ investment plans intended to provide great economic rewards.

The bare essentials in today’s world are not merely restricted to Roti, Kapda and Makaan. Smart investments have made their way onto the list. Being a parent isn’t easy. It brings along a massive responsibility — that of ensuring the your child has a promising future.

If you liked what you read, be sure to check out other articles related to securing your child's future and more.

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