Skip to main content

Should we save for our Child’s post-graduation?

Should we save for our Child’s post-graduation?


I grew up in an environment, where everything was given to me on a platter. Being the only Child of my parents, I could get whatever I wanted. My parents never asked any question or never even shared how difficult it was to earn money. Even when it came to my studies, I just had to study, and all the bills were taken care of. And now, when I’m married, I’m expecting the same thing from my Husband, but somehow he is not as coordinating as my parents. He asks, if this thing is really necessary for the house to run, or is it a value proposition to buy.

I’m sure most of us can relate to the story above even if we keep the gender aside. Everything was so simple in those days. But now the times have changed. If I fend for all the whims and fancies of my children, I won’t be able to fend for my retirement days and I will have to look at them the same way, they used to look at me when they were kids. And God knows, if they will do the same, what I did. And even if they take care of me in my old days, this is not exactly the way I would want it. I want to be independent.


There is one more important point we are missing in the above conversation – Are we teaching our Children the importance of money? I understand that in order to make our Children successful in life, we need to give them best education. This will also make them good citizens in future. But looking at the way the cost of almost everything is increasing, how prudent it is to fund for your Children’s post-graduation also. All I mean to say is that, yes if we are saving for Our Child’s graduation, is it necessary to keep our retirement corpus/goal at bay and save for his/her post-graduation also? Well, the Answer is, No it is not. Your Child’s post-graduation should not come before your retirement in the order of priority. By doing this you are not only safeguarding your own future, but also his future. Because if he goes for an education loan, then only he will understand the value of money, and this will also help him becoming a Confident Individual as he will be funding for his own education. God knows, he might also learn some financial nitty grit ties which are seriously missing from our education system.   

Charu Hastir, CFPCM is founder member of www.theriteplan.com. Rite plan is an online financial planning portal created to achieve a single objective of providing easy and Do It Yourself Financial Planning to netizens. Rite Plan is wholly owned by Tikkun Olam Financial Planning Services LLP. Please visit: https://theriteplan.com/index.php?route=common/home/

Comments

Popular posts from this blog

Why your Financial Plan is always Work in Progress?

Ever heard someone saying, this is my last month in the Gym, after that there is no need for me to workout ever again…I will stay fit for the rest of my life without any fitness regime. No one can retain the perfect physique forever without exercise. It is always a constant effort to stay at the desired level for almost anything that you think of. You cannot be a great chef without trying out new recipes, you cannot be a great marketer without adapting to new marketing strategies, you cannot be a great fashion designer without adapting your fashion sense towards the trending styles. Leave all of this, you even cannot even think of becoming a good parent if you don’t change from old tricks to new methods for upbringing this generation kids. If you have to upgrade your act with every other thing in life, then how your investments could be any different.
The Financial Planning Process has 6 broad steps with the last one focussing on the importance of monitoring and revision of the plan …

Union Budget and Your Financial Plan?

Honorable Financial Minister Piyush Goyal presented this year’s Interim Budget on 1st February 2019. Every Year, on the day of the budget announcement, you can see almost every individual glued on to their Television or mobiles to check the budget updates with much excitement. Sometimes the Budget announcements cheer us and sometimes they make us sad as we think that there are not many benefits being offered for individuals in our tax slab.

Budget is also referred as Annual Financial Statement as it contains an extensive account of the Government’s finances i.e. Government’s revenue and expenditure for the fiscal year. How relevant is this budget when it comes to our personal financial savings? Should we wait for the Budget to be announced and then start our investments or should we do our investments without any relevance to the Budget? Let’s discuss this in detail.
Budget helps in Tax Planning

Budget surely helps in planning the taxes for the next financial year. Budget is presente…

What to do when Stock Markets suddenly go up?

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch

This May we have seen BSE SENSEX moving from the levels of 39,031 on 30th April to 37,090 on 13th May and then back again to 39,352 on 20th May. Such volatility in such a short period makes us doubt our investment decisions and questions our long-term plan of staying invested in the equities. This Market volatility has the power to change our investment strategies and at times even question it. Sometimes we think that we have missed a golden investment opportunity and on other times we assume that we have invested at a very bad time. At the very best it keeps us confused on our next steps.
John Maynard Keynes has rightly said that "Markets can remain irrational for longer than you can remain solvent." But how should we treat our investments when we come across such turbulent times and what is the right course…