Jun 19, 2011
How To Invest For Kids
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While this is good news, the bad news is that these parents are not always choosing the right option for their children. A large majority of such parents are opting for low yield instruments.
Almost 45% of the respondents in the survey mentioned above said that they invest in Public Provident Funds and Fixed Deposits for their children. This is primarily due to lack of awareness.
Out of this, 26% of the parents have opted for child insurance plans that provide for the education of the child if any eventually strikes their parents.
The cost of raising a child in Urban India from cradle till college costs roughly Rs 55 lacs. The Calculation assumes that the child will take up a professional course costing Rs 10 lacs. This is the cost for today's prices and amount has to be adjusted for tomorrow inflation.
The most sensitive part is that education costs which constitutes around 46% of the total expense on a child, are growing at a worrying pace of 20-25% per year.
Labels:
Childcare,
Cost of raising a child,
Education,
Insurance
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