Offers
Rates
V-KYC
Debit Card Related
Credit Card Related
SA Welcome Kit 
Manage Mandate(s)
Get Mini Statement
categories
Bloggers
Blog collection
Press Release
Financial Planning for your Kids with IndusInd Bank Personal Loan
Posted on Friday, February 10th, 2023 | By IndusInd Bank
Parents around the world are concerned about their children’s future and strive to secure it through quality education. Indian parents are no exception, but most of us don’t realize the importance of financial education/literacy which has a great impact on a child’s future.
Various macro and micro economic uncertainties – rising inflation, currency depreciation,
recession, and more – which plague almost every country now and then – have an impact on our present savings and investments which has made the job of parents harder. Here, we will look at different ways parents can do better financial planning for their children –
Start investing
Every drop contributes to the formation of an ocean.! Most of us underestimate the importance of consistency. Just 1000 rupees per month invested into SIPs consistently over 20 years at average returns of 10% can yield INR 7,59,000.
So, by the time your child is ready to graduate, you will have a corpus of approximately INR 7.5 L ready to invest in their future!
Early investment planning for your children can provide you with enough time to save and invest at your own pace and diversify your portfolio with better asset allocation to get higher returns. Any delay in investments by parents happens mostly because of time bias. Parents assume they have enough time to realize their financial goals but fail to begin on time or stay consistent over the period.
Long and short-term goals
Financial goals are unique. As a parent, you will need to invest separately for school funds, college funds, or higher studies funds. For instance, a Master’s in literature would be less expensive in India than a Masters in the UK.
Therefore, it is important to realize how you need to save and invest to achieve short-term and long-term goals to secure your children’s future. Therefore, you need to focus on fixed deposits for short-term goals and on SIPs, stocks etc. for long-term goals.
Diversify
You must diversify your investment portfolio to get high returns at minimal risks. You can’t put all your eggs in one basket if you want the maximum value for your money. For instance, if your child is just a few months old, you will have to save for his school and tuition fee – which is a decade-long process. Thus, you need to save consistently to realize this goal. You could also consider buying gold now to use as assets for 15 or 20 years later for their higher studies, wedding expenses etc.
Buy insurance
Consider adding your children to your family’s health insurance floater plan. Securing adequate health insurance for your children is part of financial planning for their future. Any critical medical occurrences can put a dent in your life – emotionally and financially.
With so many allocations to make, it sometimes becomes difficult to have the funds you need to execute your financial planning. The most ideal option then is to apply for a personal loan for education. IndusInd Bank provides instant personal loans at interest rates as low as 10.49% with no physical documentation and a 100% paperless end to end digital application process.
With a personal loan, you can access immediate funds which you can allocate to various avenues to initiate financial progress in your children’s life. The responsibility to educate your children about financial literacy lies with you.
Visit our website to know more about personal loan eligibility and benefits, and jumpstart your children’s financial journey today.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
