13014 Howto ready your finances fra child The Times of nda
THE TIMES OF INDIA.
How to ready your finances for a child
sosaMst 15
Sakina Babieani rsh.
‘One ofthe hapiest momeots or any couple isthe rival of child Whi reveling in thejoy ofthe newborn
baby, many forget the mpac ti event wl have on tic nences Apart rom asin the dy oy expenses
{on various tems ike ood and cates coupes neato factor in higher ash auto inthe form of doetor fees, vacsnatios, andthe ke. The
‘ving ly col renin maja bt Hentplatons arian ding ary which rg te mater ergo operation Marsorer, the
monthly inflow of cash can be ateted ithe maher quits work after having the baby. Therefore, ts of paRSBBEEERE ance hat coupes pan
Ahir fnances carefully before planning fr a baby. seemena Onn
[Before the baby comes Feecmeeoy
Every couple must make some preparations before the child is bor. If the wife has been working, the fi} WAR! do would be to get ready to
survive on a single income. Tf the mother takes a break from her jb after the baby is born, then the famtuualdbetdspendent only on the father's
income, the result of which would be inereased expenses on & pared salary. seo anaseiwee
Retirement Homes To Rent Stes
Find the right property for your retirement. Quality homes torent nvest in care
‘wowanchor.org.uk
Canadian Work Visas
‘The World's Leading Experts Apply Now to Emigrate Today! Hamza oun
fnpvisas.com/Canada, Visas esau
St isimportant totes yours fora few months before planning the baby to make sre you are not cash-strapped afer the és ith, "Ty
Iwi sty on one income fora few months” sugges naneal planner Charl Shs of Grea Weakh Advisors One ayocs income canbe
invested ina sweapin fed depot short-term debt fund. This exeris has wo advanagen Fay, you wil be able to check i'you can actually
survive ona sgl income and secondly it wil op eet cons that con be ued to del withthe expenes elated othe dle
‘you are notable to manage your expenses with a single income, in all probability, you are not ready to havea baby or need to cut down on
frivolous expenses, such as outings, movies, te Ldeally, you should not only be able to manage your expenses, but also have a surplus every
‘month. This is because your monthly expense will naturally ris after the baby is born
Find out about maternity benefits
“The next step you need to take isto figure out the maternity benefits that your employer offers. As por the Maternity Benefit Ac, any woman who
das been working with an organisation for atleast 80 days during the 12 months preceding the date of her expected delivery is eligible for a paid
maternity breck of 12 weeks, either before or after delivery. However, se cannot take it for more than si weeks before her expected delivery.
You cen check with your human resources department ifyou can cub your pending sick lave or other paid leave along with the maternity break.
‘Some companies also offer women unpaid sabbatical from work after the btth of the chil. This works well if you plan to resume work ater a
slightly extended maternity break. Understand the company’s leave and matemiyy break policy before you goon leave. Violating the company’s
leave policy can cost you heavily. You may lose your jab or even end up owing the company money. This can be fnanctlly disastrous forthe
couirata ewe Ge epenet testy [raeronneies |
‘Managing expenses
‘You may find those baby shoes you saw atthe store irresistible, butt is best to avoid buying them as your baby is likely to outgrow them in afew
‘weeks, Couples tend to spend alot of money on items lke baby clothes, shoes, toys and cribs. However such expenditures mostly a waste asits of
Title use to babies wino grow very fast. Typically, baby clothes and accessories ate expensive, sometimes more than those for adults. A wiser
‘approach would be to ask relatives or close friends to pass on used clothes, This would help you rediret the money to more important and useful
items fr the baby, suchas food ane diapers.
Also, avoid buying expensive toys for your newborn. Keep in mind that your child will not remember the stylish clothes you made him wear when
‘he was three months old, but buying good quality baby food will certainly ensure thet your child remains healthy.
Get life and health insurance
When a5-year-old Parameswar Biowal was expecting his fst child with wife Itishre, the st thing he did was to take aterm plan ofa erore
am the sole earning member, I had to ensure that my wife and baby were protected against unforesoen calamities," says the Doli resident.
Like the Biswals, every expectant couple must ensure that they adequately protect themselves. Ifyou already have a if caver, you may need to
enhance i. Check with your insurer iit allows you to increase the existing cover. Ifyou have na insurance at all, make sure you buy one
‘immediatly.
Apart from the life cover, you also need to have suficent health insurance in place since a newborn is susceptible to disease. You can buy a family
foster plan and include the child itor also buy an individual plan for the child
Biswal went a step ahead while buying insurance plans He also bought a 15 lakh cover for preservation of stem cells. 1f the cells are destroyed
before his son atains 21 years of age, he will get 10 lakh as well as 5 lakh for any treatment that is required. "Asa doctor, I understand the
htp:timesofinia indiatimes comfbusiness/nee-business/Movto-ready you finances-or-a-ctildfprartcleshow 32954671. erpage=1 1813014 Howto ready your finances fra child The Times of nda
‘importance of stem cells. Therefore, I have taken insurance for their preservation as well,” he says
Formulate an investment strategy
Reising a child is nota cakewalk and the cost involved can be tremendous for a mile class couple, Hven an elementary college graduation and
taking care ofa chiki’ basi facilities ike food and transportation can costa couple close to $0 lakh after accounting for inflation. If your ei is
reaming ofa professional degree like engineering or medicine or plans to go abrosé for higher studies, then the cost can skyrocket. To take care of
such long-term expenses, you should start planning from the day the child is bora, In fat, many young couples start planning even before the
child is bore
tart by devising a long-term strategy keeping in mind the child's future goals. You do not need to stat investing massive amounts immediately.
‘You can start with a small amount, and as you near the goal, you can inerease your investments gradually. For instance, if you want to build an
ecucation find of 50 lath after a period of 20 yeas forthe child, a monthiy amount of 5,054 wil sufice, given that tis invested in an equity
instrument that wil yeld 12% annually. Fyou can't invest 5,000 immediately, you ean start with 2,000 and increase the amount inthe coming
years
Make sure you define your goals clearly and earmark investments for them as this gives you a clear base to build on. Once you have a clear idea of
how much you neod for each goal and the time perio at hand, you ean zero in on the appropriate investment products, Ldally, the product you
‘choose should depend on four factors: tenure of the investment, the rk you are willing to take, the returns offered by the option, and the taxabilty
“Typically, fora long-term goal, that, goal that is more than 10 years away, equity is the best option Since the goal is several years away, it
allows you to take ris,” says Sumeet Vaid, founder and CEO of financial planning firm, Firedom Financial Planners If, however, you are not
‘sure about investing in dizect equity, you ean opt for mutual funds. Take the help ofa financial planner who can assist you in assessing your risk
profile and choosing the right investment stratepy.
More from The Times of India From Around the Web
+ Lehewed gum before locking ips with my stepdaughter in Ishq + There that kicked off a 500% property boom ManeyWedk
ils 25 Mar20%4
+ "Teouldn't watch as Sunny was holding my son’ 25 Mer 2014 + Are You Saving Hnough for Retirement? Kalrger
+ Tlost my virginity at 23 Nikita Gokhale 22 Mar 2044 + Top 3 Common Home Insurance Mistakes MakaViews
+ Sidharth Mathotra dating Virat Kohls former gisliend of two + Trick for Saving on Shipping Orem
‘years 21 Mar 2014
«Ekta Kapoor to lose her bike virginity to Varun Dhawan 81 Mar 204 + Buying A Car- Depreciation WhalGar
+ don't get on the tale and remave clothes Sunny Leone 21Mar + Calculating the Real Cost of Having a Baby Money Aesce Sentce
me
htp:timesondia indiatimes combusiness/nea-business/Movto-eady you finances-or-2-hildfprartcleshow 32994671. erpage=1
2913014 Howto ready your finances fra child The Times of nda
shudeateccosmodalionforede.org
10% NET pas. Assured for 3 Vrs. Liverpool, UK Register for Brochure
Froe Baby Nappies Packs
‘worn bounty.com res-Nappies
Free Packs, Info, Advice & Support. Join Bounty Baby Club Now For Free!
FEATURED ARTICLES
CGulfaisinesdefend female Genetically modiiedcrops_Gemsand jewelry house to
cabincrew policies hold the key to food security come upin Jaipur
THETIMES OF INDIA 2+ Aseosewinue
Prvacypeley Feeback
ter Ties Group awe sat Uingand entertainment Hotontne Wab Serves
megcrea|thetceure tame” Trwatty|ve|Uclwens [Zac al coer | On soso |urres cbt [auton | Wo ong
yoeernge|isaseas — fameup| tarps leew Scanaz et ue SMS [naa ate ee | ores [ane
Seer enee ari rong nny oy
Sree ep [Soa rae eens
htp:timesofndia indiatimes combusiness/nea-business/Mowto-eady you finances-or-2-hildfprartcleshow 32994671. erpage=1
a9