Tuesday, November 24, 2020
Home Business Saving Vs Investing Money for Child's Future - Which One is Better?

Saving Vs Investing Money for Child’s Future – Which One is Better?

Both saving money and investing it in the best child education plan are good choices to plan for your child’s future

Parenthood is not just a state of life but a feeling that you cannot express in words. If you have kids, you want to give them the best life possible. Whether it is education, lifestyle or growth opportunities, you want your kids to have it all. But let’s face it – raising kids the right way in the contemporary world is an expensive affair. The rate of inflation in India also says a lot about parental concerns.

Thinking it’s time to start saving money for your child’s education? Investing the same amount in various instruments, like the best child education plan and others, is a better alternative.

Saving Vs Investing Money Explained

Saving an amount means putting it aside for future needs. It also implies that you want to have money available for later use. You can save money in a low-risk savings account in any of the renowned Indian banks.

On the other hand, investing money means putting it away for future use, but with the intent of earning good returns alongside. In comparison to saving money, investing it in the right instruments can yield higher returns. For your child’s educational needs, typical investment options include the best child education plans, equities, and mutual funds.

Finding a Balance Between Saving and Investing Money for Your Child

Like many Indian parents, you may think there is no difference between saving and investing money, which is not true. These are two different ways to accumulate wealth over a time-period and play different roles in defining your financial strategy. For instance, if your kid is one or two years old, you can easily pay for educational expenses. What’s also important is that you plan for long-term financial needs, like higher education cost and plans to study abroad. It can be done by investing in one of the best child education plans, stocks, or mutual funds.

Your child’s higher education plans will require a large amount of money in ten to fifteen years or more. This need should be backed by an investment-driven strategy that will give you substantial returns over the long term.

In general, you should have enough savings to cover your personal expenses, including rent, loan EMIs, insurance, and child’s school fees. Once you have considered these expenses, you should begin investing money in the best child education plans or other financial instruments.

Money, Savings, Piggy, White, Saving Money
Both saving money and investing it in the best child education plan are good choices to plan for your child’s future. Pixabay

How to Plan for Your Child’s Education?

The best child education plan is the one in which you regularly contribute to the goal of building your child’s future. You must be prepared to support your child both financially and emotionally. One of the most significant expenses is your child’s higher education fees. Your current lifestyle will also have a substantial impact on the decision you make, whether you want your child to opt for higher education in India or abroad. You need to consider various factors to know how to save or invest for your child’s future. Here’s how you should plan for this long-term goal:

  • Invest in the best child education plan to be financially prepared to fulfill your child’s dream career option.
  • Invest money early in life. It will help you generate more wealth.
  • Invest in the right options based on your child’s education goal. If you also want to plan for the short term needs like school fees, invest accordingly.
  • Do consider the rate of inflation in India.
  • Ask for help from a reputable financial advisor like FinEdge to create a suitable investment strategy for you.

ALSO READ: Amazon Introduces Netflix-Like User Profiles for Prime Video

Both saving money and investing it in the best child education plan are good choices to plan for your child’s future. What’s more important is to understand what’s right for you based on your financial position.

(DISCLAIMER: The pictures used in this article are supplied by the author, NewsGram has no intention of infringing copyrights.)

 

 

 

 

 

 

STAY CONNECTED

19,120FansLike
362FollowersFollow
1,783FollowersFollow

Most Popular

Snapchat Releases Spotlight, To Pay Top Creators

Taking on TikTok, Popular photo-messaging platform Snapchat on Monday officially released Spotlight where Snapchatters will also have the opportunity to earn as they do...

Care For COVID+ Mothers and Newborn Babies

Many COVID-19 positive pregnant women experience mild symptoms of cold or flu. However, pregnant women who are older, overweight, or have pre-existing medical conditions...

MP Govt To Produce Clean Fuel From Stubble Burnt

The Madhya Pradesh government has proposed a plan to set up an industrial unit producing fuel from stubble burnt by the farmers in the...

Felling of 315 Trees When Air Quality is Worse in Delhi

The Delhi High Court on Monday sought a response from the AAP government and others over a petition against an order for felling of...

Cyber Frauds May Increase in India in 2021: Kaspersky

With more users getting connected to the Internet and entering the digital payments ecosystem, cyber fraud incidents may go up in 2021, a researcher...

UP Marks Record in Production And Sales of Sanitizers

The Yogi Adityanath government in Uttar Pradesh has used the 'opportunity in adversity' concept to create a record of sorts in the production and...

Greater Risks of STI in People Above 45

Researchers have found that people above 45s are at a higher risk of contracting sexually transmitted infections (STIs) than ever before because of society's...

SC Happy About Permanent Commission of Women Army Officers

The Supreme Court on Monday expressed happiness after learning that the Centre has implemented its verdict to grant permanent commission to women officers in...

Recent Comments