It is high time for you to understand the importance of financial planning for women. If you are a single mother and struggling to plan a secure financial future for your child, womonesyta always here to help you out. It becomes a challenge for a single parent to handle everything from studies, growth, and the secure future of a child. You can learn about financial growth and planning at womoneysta to grow your money and achieve your desired goals. This small learning can improve a lot in your finances and income, providing you with peace of mind and a stress-free future.
3-Step Plan To Start Building Your Child’s Financial Future
Securing a financial future for your children is a necessary thing to have a stress-free future. At womoneysta, you can get the best advice to do the right things for the future of your child. Mentioned below are three elaborated points that can help with financial planning for women.
Create A Separate Saving Account For Your Kid
You will need basic documents, including a birth certificate, guardian details, and address proof for the kid to open a savings account. All the gift envelopes given to your kids should be submitted to the account to maintain a good amount of money in the bank.
Small Amount Of Monthly Income
This step should be followed by every parent to ensure a secure future for their child in emergencies. Add a small amount of your income to their personal savings account every month to slowly increase the amount of savings per month.
- Life Insurance and Health Insurance – It is very important to explore new and suitable insurance plans for you and your child. Get a life insurance plan for yourself to make sure that in any circumstances, your kid is financially secure. Also, get health insurance for the kid, even if it’s a newborn, you can add them to a health insurance floater plan from day 1.
Start Investing Early
It becomes a question for beginners who want to invest, where to invest, and how much to invest. Create a well-balanced diverse portfolio that includes debt instruments and mutual fund instruments.
For example you invest 25,000 rupees per month, over 18 years, you can build a 1.5 cr portfolio for your child.
Let’s say we invest 25,000/- per month, divide the amount by 50% into safe, assured instruments like PPF, Sukanna Samridhi Yojana, or debt mutual funds. Now divide 50% into equity mutual funds or stocks, now you will typically get a debt return of 7-8% and an equity return up to 12-13%. Now, if you do this every month for a straight 18 months, you will get a return of 1.5 cr straight for the secure future of your kid.
Time is money. If you start investing early, you will get a good return in a particular time, but if you start the process 5 years later, you will have to increase your investment amount up to 48,000 per month and decrease the safe instruments up to 10%. So you start investing early, it should get a good amount of return, and you know the importance of the quote “ Money grows with time”.
Conclusion
The article basically shows the importance of financial planning for women. The single mother must have security for their child’s future, ensuring safety for them in any circumstances. Various steps and tips are mentioned to follow and start planning for the future. Financial planning for women is also necessary to make them financially free and confident to handle every situation alone.
FAQ
1.Why is it important to plan the future of kids?
Ans. It is necessary to plan a financially stable future for the kids to ensure their security in your absence.
2. What challenges are faced by single mothers?
Ans. It becomes difficult for a single mother to manage everything from studies to future planning. You can check the blog to get a solution.
3. What makes womoneysta best for financial planning?
Ans. Womoneysta helps women manage their finances and gives the best advice for the right investment.