Map out the success route

For any parent, prioritising their child's future is crucial and the sooner you start, the better

Watching your children grow up and turn into responsible and successful adults is one of the biggest joys in life for every parent. Time flies by and before you know it, your little bundle of joy will grow up, and it will be time to provide for their higher education and wedding.

All parents want to provide the best foundation for the future of their children. This includes good education and security, in case of any eventuality. Thus, the aim of planning for children's future is to create a well-laid out plan for foreseeable expenditures such as those on higher education and wedding, and to provide for an adequate security cover during their growing years. You need to support your children until they start earning. Hence, you should consider every expense that may arise in the future, to save adequate amounts for them. In addition to the basic requirements of your child, remember inflation when you calculate the funds needed for your children's future. Preparing for inflation will help you plan better for the future value of costs.

Future planning for the children acquires even more added importance because their education and wedding are high priority life goals, which can neither be postponed nor can there be a compromise on the amount to be spent on them. Good education has always been the passport to a secure future. Today, career opportunities have grown manifold, and there are many professional courses that your child can aspire for. However, with the passage of time, the costs of higher education have also increased exponentially. It is always advisable to choose your plan basis your child’s needs and goals. You must calculate the approximate amount you would need to fulfil the same. Factors such as inflation must also be considered. Additionally, before choosing a child plan, calculate the time frame in which you would require the money. Like most conscious parents, you might be saving regularly to ensure a safe tomorrow for your child. However, savings alone are no longer enough. For ensuring adequate funding of your child's education, you as a parent, need to do two things:

It is never too early to start saving and investing for your child's future. Especially in today's context. For example, the cost of a professional degree today is approximately $100,000. If your child is one-year-old today, after 17 years when they go to college, you may require a sum of $270,000, assuming an annual rate of inflation of six per cent.

There are many products which your financial planner can use to achieve the above objectives. With so many options out there, sometimes it becomes more a question of doing one’s homework and finding out the right strategy and product, which ticks all the boxes that you need. One such example is the Children’s New Professional Education Plan at LIC International, which offers a guaranteed benefit plan to build a corpus for the child's higher education, and provide for a security cover in the event of the parent's unfortunate demise.

“LIC International has been in the GCC for more than three decades. During that time, we have been fulfilling our commitment to serve and strengthen relationship with every parent. This plan is designed to exhibit empathy to their needs and above all, to engage with them and provide a ‘caring’ attitude. We at LIC International realise that delivering a great customer experience is a continuous journey and it is just a beginning. LIC International is committed to constantly improving our service levels so as to give an even better experience in the years to come.” — Pradeep Mishra, General Manager, LIC International, Dubai.

To sum up, planning for your child’s future from an early stage is ideal for ensuring funds for your children's future needs. As parents, you wish the best for your child and want him to go above and beyond what you have achieved. This, among other facilities and amenities, includes providing world-class education so that they can achieve their career goals. This is easier said than done given the challenges and competition in the field of education today. Deciding to have a child and grow your family is a huge decision. Once you welcome a baby into your life, you want to do everything in your power to ensure that your child will always have everything they could ever want. The rising costs and the rate of educational inflation could throw a spanner in the works.

Apart from the challenges of education, which is for the child to grapple with, parents have their own hurdles to overcome i.e. sharply rising cost of education. As a parent if you are not adequately geared to meet this particular challenge your child could well miss the bus on a solid degree regardless of his/her skill and aptitude. There are many new-age policies that offer multiple features, which will help grow your investme To plan for your child’s future — education, lifestyle, marriage etc. — you have a galore of investment avenues today. But planning and investing wisely, is no child’s play. Simply, saving and investing in an ad-hoc manner may not help. You need to identify the appropriate investment avenues at an opportune time so as to meet your financial goals. Thus, when your children are ready, a large amount is also ready to fund their goals. Invest today in the right financial plan to fulfil the dreams of your children.

— ali@khaleejtimes.com