(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at: reachyourviews@gmail.com)
1. First things first; make your financial plan
Fundamental aspect for planning for your child's future is to first plan for your and your family's future. Then comes the other plans for your family.
A financial planning coach will be an ideal person to plan out these things.
2. Ensure financial security by covering and comprehensively insuring:
As a responsible parent, its your duty to ensure no mishap ruins the future plans for your family and kids. Ensure you are adequately insured which can give immense financial security to your family.
3.Identify key goals for your child's future, RIGHT NOW:
It's important that the goals are first identified for planning their future.
The goals can be -
School education
College education
Entrance coaching for higher education
Overseas education
Everyone carry dreams for their children and their future.. But make it more methodical and systematic by planning for them.
A financial planning coach can help you identify many more such goals and help plan for them too...
4. Plan for their future, RIGHT NOW:
Don't delay this process. Whatever goals you aim for your children, plan it Right Now... There is a definite financial cost for the delay one has to pay...
5. Make a comprehensive financial plan for your child:
With the help of a financial planning coach, you must make a comprehensive financial plan keeping the goals and the objectives in mind for their future. Not making a structured plan will lead one to no where in the current dynamic scenario.
6. Education is key; plan it RIGHT NOW:
Education is the key for the kids' future. Give them the best by planning for it right now. Proper planning can take you to greater heights in terms of giving them the right kind of education.
7. Plan based on a precise target:
Any plan which does not aim @ a target is of no use. Whatever goals being planned should have precise targets which should be measurable, attainable, reasonable and time bound targets...
A financial planning coach can assist you with targeted planning.
8. Beware of "Expect the unexpected" factor:
Planning for children is like playing a cricket ODI. Before getting onto the field one must have a clear game plan. But a smart captain will always expect the unexpected and have ways to handle them. A coach's role is to help the captain with such plans to tackle unexpected situations.
Same is the case with financial planning, as external and internal factors play out now and then..
A role of financial planning coach is important in this perspective...
9. While planning have an eye over the future costs:
Costs of education are expected to escalate in the future by leaps and bounds. In my earlier blog updates, had estimated future costs to spike exponentially.
For eg., Professional education which costs Rs. 7.5 lakhs now can cost Rs 61 lakhs after 15 years.
Foreign education now costing Rs 15 lakhs can cost Rs 1.23 crores ( Yes, 1.23 Crores) after 15 years. These are based on some broad estimates of future costs and they are fairly realistic.
A financial planning coach can guide to handle these rising costs and maximize your returns accordingly.
10. Keep a track on the plan, ALWAYS...
Mere planning doesn't work out; they have to be constantly monitored and re-adjusted according to the future scenario. That's why the role of financial planner is very crucial as he is the one who helps you monitor and review the plan.
Do talk to experts @ Money Avenues for making comprehensive children plans.
(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at: reachyourviews@gmail.com)
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