Anurag Kashyap had to work for his/her daughter’s marriage, parents should know how to save for their children.

mutual fund

These days, people are relying a lot on mutual funds for growing and saving their money. When your child is born, you can start investing money for him/her from the very day. In this, you can save money every month as per your capacity. By the time your child needs money for his/her education or marriage, its maturity will be much more than the actual amount.

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Start saving early

For example, Mr. Arora has a three-year-old son. his/her son will complete his/her graduation after 15 years. As of today, the cost of graduation is Rs 5 lakh. Assume an inflation rate of 10% per year. Therefore, after 15 years, Arora will need Rs 20.88 lakh for her son’s graduation.

If he/she starts investing now then he/she will have to invest Rs 4,180 every month, but if he/she delays investment and starts investing after 5 years then he/she will have to invest Rs 9,079 i.e. almost double. So you can easily see how much is the benefit of investing earlier to get the same amount at the right time.

Saving alone is not enough

Policybazaar IndiaAccording to, if you want more returns, then you should not depend only on savings. You can also consider other investment options available in the market. Many companies offer child plans and you can choose them according to your need and capacity.

educational planning

Considering tuition fees, hostel and other things, think about how much your child’s education might cost in the future. You can adopt fixed deposits or systematic investment plans (SIP). Can avail the benefits of specific savings schemes like Public Provident Fund (PPF). These give 7.1% returns and Sukanya Samriddhi Yojana (8%) is also a good option.

emergency fund

These funds come in handy when you face a sudden problem and need money. These come in handy when unexpected circumstances arise.