SAving for your child..

We started thinking of saving only after we had a breather from our high expenses. but today i am more wiser and wish i could have started the same bank accounts when they were born. A hundred rupees in their accounts would have come a long way.(my daughter is 12 and son is 9).

Here are some pointers i have learnt as i have been trying to learn about managing finances.i am not financial expert, or qualified on the subject..from what i have learnt so far...
When you think saving, the age of the child plays a vital role...why... because ..when you start very young...the time span you get is more, you can start with a small amount and with the benefits of compounding working, you will accumulate well... say we start today when the child is 3, and want some money for him at 18 you can start at 5000 and at 7% (I am assuming a 7%) on this you will have around 15 lakhs at the end of the 15th year..great isn't it.....
When the child is between 0-5 and you have an time frame of 18 years, you can take calculated risks. when the child is 6-12, the investment should be more balanced. as the time frame reduces...and when it is above 13-18, you have to cover and secure the principal, where you can take out the money as and when needed...with minimum lock in period.
So if you have decided to start saving, there are ways...through savings accounts, mutual funds, child plans.

Remember, the trick is to invest regularly and without fail. And not to draw out of the investment. Simply allow it to accumulate. Decide how much you want to invest on a regular basis. It is important to choose an amount that you will be comfortable investing regularly over the long term. Decide the how you want to invest annual, quarterly or monthly.Remember the objective and be focussed


Happy planning and saving....

Shanvy,

I have been following your posts in Money Matters with much interest. They are all very educative and useful. Since you write both based on knowledge and experience, your posts are real engines of info. I do hope that our ILites will learn from your words.

regards
Vidya24

Originally Posted by Vidya24

Shanvy,

I have been following your posts in Money Matters with much interest. They are all very educative and useful. Since you write both based on knowledge and experience, your posts are real engines of info. I do hope that our ILites will learn from your words.

regards
Vidya24

Hi v24,

Never realised you were the moderator and expert here.....i just wrote about it because there were few people asking about saving/gifts for children....

I only try to write from my experiences because it is always safer....

Shanvy,

I am the moderator here, but definitely not the expert (and I am quite sure I did not say or imply that). Money Matters are as important to us women as any other field like cooking or fashion. Yet it gets less active attention. I was reading all the posts here and saw that you have actively replied and contributed constructively out of experience. That's all, sorry if I tried to sound like an expert which I am not.

Vidya

Originally Posted by Vidya24

Shanvy,

I am the moderator here, but definitely not the expert (and I am quite sure I did not say or imply that). Money Matters are as important to us women as any other field like cooking or fashion. Yet it gets less active attention. I was reading all the posts here and saw that you have actively replied and contributed constructively out of experience. That's all, sorry if I tried to sound like an expert which I am not.

Vidya

Hi v24,

I thought moderators are assigned those forums based on their experitise. you have not implied that anywhere. i think i should say sorry if i hurt you.

Yeah, i have learnt it in the trial and error basis. two years back, veda gave me some money...and said i will treat this is as gift to you..and forget it.. you invest into trading...the cautious me went and invested how ...as an sound investor...all dividend giving ones...some of them with huge -ves now..but long term investments...

BTW thanks for complimenting me...

Shanvy,

And no offence taken!

It will be really nice if you can continue to write actively here. Women need a more active role in handling money be it in their household or outside. I do find that your articles are useful, crisp and practical.

regards
Vidya

Dearest shanthi

We are investing for krishna right from his 3rd month, our first investment is his PUNYAVAGHANAM money collection, we got one NSC in his name..

And, next time, his 1st birthday collection, we got KVP in his name.

And, every year ,we used to do some investment in Children policies for his future education .......and other issues....

My hubby is very much expert in analysing all this and my part, i will remind him atthe correct time and also nag him if he fails to do that............

FOR ME, MY, FIRST EXPENDITURE IS MY INVESTMENT

Thank u for starting the thread...and sharing ur ideas.

luv

latamurali

hi latha,

thanks for stepping in....

IT is nice to know that investment/savings is your first expense of the month and also you have planned well for your son....