Financial planning aids in achieving life goals systematically and instills a disciplined approach to living in children.
New Delhi: Father’s Day is the perfect occasion to celebrate the dads in our lives and show them how much we appreciate everything they do for us. Every year, the world celebrates the special occasion of Father’s Day on June 16. This day plays a pivotal role in bringing families together and honouring the incredible man who works as the backbone of the family. Whether they are stay-at-home dads, working dads, or grandpas, they deserve to be recognized and celebrated on this special day.
Also Read– Fixed deposits: Which bank is offering highest FD interest rates post RBI bulk deposit rule change?
On this special day, as the daughter/son may be scouting for ways to make the day special and memorable for the special person in your life. We have listed few ideas for Father’s too who can also make an effort on the occasion of this special day to ensure their kids financial security.
As a father, besides ensuring quality education and good health for your children, it’s crucial to begin planning for their financial future right from the start. Financial planning aids in achieving life goals systematically and instills a disciplined approach to living in children.
Talking to Zee Business, AmeySathe, Fund Manager, Tata Asset Management has suggested few important ways to invest from kids’ perspective
Also Read– Forex reserves surge by $4 billion to $655.8 billion, a record high
• Savings account:
As a father, it very important to have a savings account for kids is important. This plays a key role in teaching the concept of saving money by regularly depositing money received from gifts, prizes etc. This can also help them understand the basics of interest and watching their money grow.
• Child solution plans:
Child solution plans allow kids to have exposure to stock market and can create wealth over long period through compounding. Such funds give equity as well as debt exposure to kids over long term. However, such plans have lock in of 5 years or till the child attains age of majority (whichever is earlier). Since they are invested in the stock market, it can have its own volatility hence it’s important to invest in such plans for really long periods of time.
Read More: Fixed Deposit Terms: 9 banks make changes post RBI’s new guidelines on FDs
• Public Provident Fund:
PPF account for their children is also a good option. Fathers can regularly contribute in the account, this may help in creating a significant corpus for their future needs. It is important to note that the PPF accounts have a lock-in period of 15 years, and the interest earned is tax-free.
