The responsibilities of a parent are seemingly endless, beginning from the birth of a child and continuing with their upbringing, education, and marriage. In India, in particular, parents consider their child’s marriage to be one of the most important responsibilities of their lives. Therefore, it is important to consider a monthly savings plan to start saving for your child’s marriage from an early age. This will help you manage your child’s wedding expenses in an efficient manner.
There are several savings plans you can choose from and begin your preparation for your child’s marriage. The earlier you start investing in a savings insurance plan, the better placed you will be in accumulating a substantial corpus.
For example, the assured savings insurance plan from TATA AIA Life Insurance has been designed to help you plan and achieve your financial goals. This plan offers you the option to have a regular income along with a life cover to protect your family’s financial future even in your absence.
Why is a Savings Plan Important?
It is no secret that weddings are expensive events: whether your child opts for a simple family wedding or an expensive Indian wedding, the joyous event means a substantial expenditure besides meticulous planning. The latter type of wedding usually involves several functions and hundreds of guests are invited. Therefore, it is better to start saving for your child’s marriage when they are young.
How Do You Make a Savings Plan?
Firstly, you must estimate the projected expenses of a wedding considering the effects of inflation. Secondly, you should decide how you want to save for the major event; you can choose from fixed deposits, recurring deposits, systematic investment plans, life insurance plans, government savings schemes, or any combination of the above schemes. It is important to choose a savings plan that is aligned with your financial capabilities. Therefore, you must start with a monthly savings plan and set aside a part of your income for the same.
How can a Savings Plan Help You Prepare for Your Child’s Marriage?
There are several ways through which a monthly savings plan can help you prepare for your child’s marriage.
- Clarity: A savings plan offers you clarity on the approach of your savings, how much money you need to save every month and where you should invest it. Therefore, you are more likely to build an adequate corpus in time for your child’s wedding.
- Financial discipline: By choosing a monthly savings plan, you can bring in financial discipline and better manage your income, expenses, savings, and investment. Such a systematic approach lets you restrict unnecessary expenses and pursue your financial goals in a more effective manner.
- The advantage of starting early: If you start investing in a savings plan at an early age, say in your twenties, you benefit from the power of compounding your investment as time passes. Even if you start with a small amount of savings, you can always increase the amount of your savings plan as your earnings grow.
- Protection from loans: Investing in a monthly savings plan enables you to escape the need to take a loan for your child’s marriage. Furthermore, having your own corpus allows you to plan the wedding according to your child’s wishes.
A savings plan is an effective tool to prepare for your child’s marriage. It is easy and safe to invest in a monthly savings plan online with a range of options available for you to select from.