Financial Planning For Children: What Parents Say?

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“Save for a rainy day,” “Buy only what you need” – We all have grown up hearing these pearls of wisdom from our parents, haven’t we? But in the 21st Century, financial planning is no longer limited to setting aside some hard cash for a rainy day. There are a million things that we have to configure in our financial planning, more so, if we are responsible for tiny lives. After all, we can deny ourselves a few indulgences, but we surely don’t want to say no to our kids, right?

So, how do we ensure that we can provide for a better and brighter future for our kids? We asked a few parents for their advice on successful financial planning for their children, and here’s what they had to say:

1. I Started Planning For The Long Term

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“Being a single mother, with a young kid, I could see these looming expenses on the horizon, and I wanted a sure shot way to meet them. From what I had heard or read about money and investments; I knew as I was the sole provider of my family, I couldn’t risk my money at any point in time. So, I started searching for safe, long-term savings options and plans that would work for me.

There was so much that I had to figure out. I had to take into account my child’s educational expenses, especially if he wanted to go abroad for further studies, extra-curricular activities for overall personality development, create a contingency fund in case of an accident, and also figure out a way to create a pool of funds that could cushion the blow in case of a misfortune – all of this while running the house on my salary and giving a comfortable life to my child. So out of my stressed funds, I decided to keep a small part towards the future of my kids.

Keeping in mind these requirements, I invested in the life-long insurance plans from ICICI Prudential Life. The policies offer high returns, which would take care of my kid’s educational milestones. The best part is they provide the best of two worlds as they offer growth of my investments and secure them against uncertainties in life.”- Arpita

2. I Learnt To Take Charge Of My Money

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“As a working mom, I devoted all my free time to my daughter. Between office responsibilities and house chores, I wanted to spend every waking minute with her, making sure she was getting everything she needed. Between coming back from office, and spending time with her in the evening, and then cooking a nutritious meal which we could share as a family, I seldom found time to do anything else.

So even though I had a nagging worry in my head about the lack of financial planning for my kid, I couldn’t manage any time to do something about it. I needed a quick fix for my financial planning needs, which wouldn’t require me to devote a considerable chunk of my time.

And the answer to this quandary was met by ICICI Prudential Life. Their plans provided me the dual advantage of investing my hard earned money and securing it against uncertainties of life. Plus, I never knew financial advice could be given over multiple touch points at my own choice. I can contact them over phone or website or even the banks. This enabled me to take charge of my finances by helping me select the perfect plan for my needs. I am invested with them for the last three years, and I never have to take any extra headache for any of getting in touch with them regarding any queries.” – Atulya

3. I Stopped Looking At Insurance As An Expense

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“In your late twenties, you don’t think about buying insurance. I too had a similar thought process. I used to think of insurance as an added expense, especially when I was starting out in my career. So at the starting of my job I was happy investing in an R.D. or a P.P.F. Five years down the line when I became a father, I was forced to reconsider my financial mindset when a close colleague of mine passed away unexpectedly. His untimely demise and his family’s subsequent money troubles made me worry about my kids’ future. My little son talks about being an astronaut, sometimes doctor to something as crazy as a rower. Whatever his dreams are, protecting his dreams is always my priority. I remember my father had a whole file of documents with policies for all of us. So, after that incident, it struck me, am I doing enough? So, I sought out financial advice and finally settled on a term plan – ICICI Pru iProtect Smart.

The plan with its economical premiums fitted right into my tight budget and also gave me a cover against 34 critical illnesses along with a life cover. This ensured that my child can live his dreams no matter what. The plan also gave my family the flexibility on how they want to receive the money in case of an unfortunate event – monthly, lump sum or a combination of both; thus ensuring that my child will have the money he requires at his key milestones in life.” – Anuj

4. I Got Over My Fear Of Investing By Choosing A Safe Bet

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“For me, financial planning had always meant putting money in safe savings instruments like F.D., R.D., etc. However, I got a rude shock when I realized that my savings wouldn’t be able to provide for the future needs of my kids simply because they weren’t growing at the same pace as inflation. My savings wouldn’t be able to buy half the stuff in the future because everything would be so expensive!

This rattled me. I decided to learn about investment. While doing my research, I came across ICICI Prudential Life’s Smart Life Plan, which proved to be the solution for my need of providing for my child’s future. It not only allowed me to invest money according to my preferences like in equity, debt and corporate bonds, but it also enabled me to get money at my child’s key educational milestones! That’s not all, the policy also has the option, wherein in case of an unfortunate event, the company would pay my future premiums to ensure that my child’s goals are met no matter what. I couldn’t have done better, money-wise!”-Nripendra

These parents sure know how to stretch a penny to make their kids’ dreams come true. You, too, can follow their advice to fulfil your kids’ dreams. What financial planning have you done to secure your kids’ future? Share your opinions with us in the comments section.