Children's Day 2021: Secure financial future of your kids - here's how

From the day your kid arrives in your life, everything related to him/her takes center stage - both emotionally and financially. However, providing for his/her overall growth — from health to education — can be challenging if not planned in advance.

Securing your children's financial future is mostly about teaching kids some money-saving tips from the beginning. Educating your children on the value of money is a lesson that will serve them for life, and saving for your children will become a routine and will go hand in hand from the start.

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Here are some ideas for the best way to start saving money to secure your kids’ financial future.

1. Start saving money early

Start saving money from day one, from the time your kid is born. You can start with regular small payments and top them up during festivals and birthdays. And always remember, a little saving today goes a long way over time. Starting early always pays!

2. Open a savings account

Once your child is old enough, swap the piggy bank amount in the kid's bank account. This is an important milestone and will help to give your child a sense of responsibility towards their money. When you trust your children with money, it shows that you believe them to make smart decisions. This not only instils a sense of accountability but also teaches them to become financially independent.

Since most banks offer two types of savings accounts for children, you can manage the level of control the kids will have over their money. When you open an account for a child under the age of 10, you need to operate the account jointly with the kid. Accounts opened for kids between 10 and 18 years offer flexibility and kids can manage them on their own.

3. Make them financially literate

Make them financially literate from start. Many schools don't teach children financial literacy, so it's up to you to fill this gap. This includes areas of finance such as interest rates, tax saving, digital payments, investments and the importance of a pension or kids' education plan.

This knowledge is valuable, especially for their adult life and allows them to appreciate the value of money early on. Giving them their own savings account will also teach them how the banking system works. They'll learn to write cheques, open recurring or fixed deposits, transfer money, and do so much more!

4. Look for best child saving plans

There are many milestones that your child will go through - from primary school, graduation to further studies. All of these would require huge money. Therefore, it's important to find simple savings plans, so that their future is always secure.

When saving for a child, you need to also consider other expenses such as international education. To fulfil these dreams without burning a hole in your bank account, you should look for different child savings plans that fulfil all these requirements.

5. Teach them the importance of money

It's worth remembering that your children's attitude towards money will likely stem from your own. Don't be shy in talking about your finances and how you spend, save and invest. As your children grow, involve them in decision-making and encourage them to save for their future. Continue giving them money-saving tips, so that they reach adulthood with a healthy attitude towards money.