PolicyTray

Insurance Blog

Five financial milestones in your children's life


Kids are expensive. But the good news is, you can budget for much of these initial cost if you plan properly. Here are five milestones in your kids’ life that you need to be prepared for. 

1.       SCHOOL

You’ve heard several jokes about this, but we cannot insist on the impact your child’s schooling will cost you, right from kindergarten to high school.

It’s not just the school fee that’s gonna take a toll on your wealth – it’s all the supplies like books, stationery and bags.

And so if you ever hear that you should start saving and querying for KG admissions while your wife is only pregnant, know that it’s not just a joke, but a deep practical crisis!

2.       POCKET MONEY PHASE

The biggest myth is that your child asks for pocket money only when they’re teens.

Wrong!!

It’s found that your child might expect you to give them some kind of allowance or the other right from the age of 10. But don’t cringe, and don’t be stingy.

Giving your child pocket money can teach him about handling money, but you need to be consistent with it and also monitor what they do with all the cash.

3.       COLLEGE

Although every parent likes to believe that their kid is a genius who will get into IITs and IIMs, it is hard truth that college will cost money. Tuition fee, hostel fee and what not!

Beginning to save for your child’s college when they’re still in diapers might sound silly, but given the cost of education, it really is never too early.  

4.       FIRST VEHICLE

Yes, it might have seemed like only yesterday that your little princess was wandering around the neighbourhood in her little bicycle with trainer wheels, but all of a sudden she’s now 17, and wants her own car or scooty!

Apart from the vehicle itself, getting the first wheels for your kid is a financial milestone cuz it’s going to be quite expensive, but there are the ongoing costs including gas, insurance, maintenance and the seemingly inevitable accident.

5.       FIRST JOB

When your child gets their first job, it’s more than just a source of income for them. Remember that it’s also a good way to learn how to work responsibly, how to get along with a variety of people and how to manage newfound wealth. 

If you help your children with a budget and savings plan, it might be a way to earn money that can get into a healthy financial plan for their future.

READ ALSO:  FINANCIAL MANAGEMENT FOR TEENS

READ ALSO: MAKING YOUR CHILDREN FINANCIALLY INTELLIGENT

Written By: BALAKARTHIGA.M



Loading