Published On: Tue, Apr 10th, 2018

Gifts that You Can Buy for Your Children’s Future

Gifts are a part of our life. They are a part of every happy occasion in our life. Gifts mark the spirit of celebrations and bonding with your family especially your children. You will always pick that special gift for your child to make them happy. However,is momentary happiness everything? Have you thought about the best gift for your child yet, or is it just a passing moment for you?

Gifts that You Can Buy for Your Children's Future

What is the best gift for your child?

It can be investing in your child’s future so that they are free of any financial insecurity. So, that they devote their time in preparation to achieve more in life. Many of us, as parents, are not able to correctly estimate the cost of raising a child, therefore, unintendedly putting our child’s future at risk. However, a secured future for your child is the best gift you can give them. There are many investment options for your child.

Before you take the big plunge, it is important for you to be aware of the best investment avenues and then, make an informed decision.

Your decision may be financially inclusive to cover the cost of education, marriage expenses, or simply providing them greater access to sums of money exactly when they need it most in their lives. Thus, it is crucial to invest inhigher cash (return) benefits as well.

We identify few such investment options for you.

1. Term Insurance with regular income pay-out

Term insurance plans are for the guaranteed safety of your every projected or possibleexpense, associated with your child. A term plan will provide comprehensive and complete financial protection for your child as this type of insurance policy guarantees a lumpsumpay-out if something happens to you.

Under term insurance plan, the nominee gets a lumpsum cash benefit (designated by you) in case of the death of the insured. In other words, it is an income-proof plan. If a life calamity happens, you need not worry about your family being income-deprived in your absence. Term insurance plans are meant to exactly ensure that your child is entitled to the same source of income through a single sum pay-out. So that life continues, like the way you wanted it to be for your children. Also, you have an option to convert your term plan into monthly income pay-out at a fixed sum or a compounded annual income growth basis.

2. A Computer

A computer is not just a machine, but it is the small world of knowledge and insight and can be very beneficial for your child’s brain development and the growth. Buy them a computer to improve their natural abilityto grasp new things at a young age. However, it, so that they use the machine to equip themselves in the competitive scenario of today. It is a worthwhile investment, since every time they spent on a computer, helps them nurture their mind by gaining useful and meaningful insights of the world. Digital learning, for example, assists them at the primary school level. There are many video tutorials or e-education classrooms where your child can seek value-add information to help them academically.

3. Child Plan

There are many types of child plans. Your priority should be a child insurance plan which will entitle him/her to a specific amount in case of a parent’s demise.Your child will receive the amount at the specified point of time in instalments or regular intervals. This way, your child is insured in a safe and secure environment. Such funds can be used for continuing your child’s education, without interruption, in case an untimely demise of one parent happened. In this way, there is never any real-time interruption in your child’s life.

4. Buy Some Stocks (penny stocks and leave them for next 25 years)

Stock investment is both risky and rewarding. It is the market turmoil which makes the stock investments riskier. However, if you choose to invest on a long-term basis, leaving the funds idle for the next 25 years, then you are likely to witness a good growth of funds. In the interim, it is always important to monitor the fund value performance so that you can invest in penny stocks, here and there, and reap rich dividends for your children later.

About the Author

- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade.

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