Expecting a Child Soon? Thought about your Financial Planning?
Are you expecting a baby soon? Are you worried about how you’ll be able to manage with limited finances after he’s born? Are you concerned about your child’s higher education?
Soon you may be incurring expenditure for diapers, baby soap, cradle, cots, and the works. Within a few years, you will be preparing for clothes, shoes, education, sports equipment, dates, and bikes. We need to finance our children not only until they are in university but also until they start earning substantially. Therefore, the need for our intelligence in saving rises substantially.
Money does not grow on trees, and we all require more than what we have. Therefore, we must plan for our child’s education. It should be pre-planned to bear the cost of what our child chooses to do in the future. Planning helps in the appropriate allocation of resources to the required areas.
Teaching the child
It is essential to teach the child about managing finances. Giving the child pocket money, making small personal expenses, and then explaining the need to control expenditure and savings teaches them valuable money management skills. And as a child grows up, a bank account should also be opened so that he can learn the details of banking and manage his money.
Two things need to be done simultaneously: children should be taught the power of money and what they can buy while also telling them to refrain from spending on whatever they desire. They have to be taught that a balance can lead to success and an imbalance otherwise.
Investing for the future
You might want to think about making investments in the child's name, which mature when the child becomes an adult. Further, when the child is in his late teens, he should be allowed to make a responsible choice of taking financial loans for his needs, whether educational or otherwise. Such efforts enable the child to realize the value of money, making them more responsible and aware.