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Future Generali Cancer Protect Plan

Why Young Parents Should Take Financial Planning Seriously?

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The birth of your first child is something you will embrace for the rest of your life. You spend months anticipating and preparing for that very moment. Everything from finding a unique name to decorating the house and stocking up baby products is done before time. And the instant your loved one arrives, your priorities, schedules, and your whole life changes. All the things begin revolving around the toddler.

After the initial whirlwind passes, it is essential to create a proper financial plan that will prepare you for future expenditures and allow you to take good care of your child. Between diapers, baby-care products, infant formulas, and paediatrician visits, the expenses pile up quicker than you expect. A proper financial plan helps in tackling these expenses without any worries.

Below stated are some ways in which financial planning helps you in dealing with the responsibilities of being a parent.


  • Helps in Keeping Things Simple

    Planning for future, whether personal or for your spouse is a tough task on its own. Add a baby to this equation, and the task becomes overwhelming. The expenses that a new baby brings are high, and you would not want to cut out on these expenses as they are necessary. Therefore, when you are just starting, focus on the necessities. After that, make a proper expense plan for future needs. Establish your short-term and long-term goals and outline an adequate strategy. This will help you in keeping everything simple and under your control.

  • Assists in Outlining Expenses

    The increased member of your family will likely cause a reassessment of your household budget. Your old and new expenses and adjustments in your former lifestyle will all come into an account in these expenses. The extra money that you were saving before, by cutting down your expenses, will now be reallocated to cover necessities like daycare, bottles and the most essential– diapers. Some of the new significant expenditures will include furniture, toys, clothing, stroller, high chair and others for the baby.

  • Allows Establishment of Emergency Funds

    Many of the day-to-day expenses when a baby comes in your life are easily identified. However, unanticipated costs are something that occur suddenly at the most inconvenient times. These expenses can cause a big hole in your savings. Therefore, it’s a good habit to save money for the rainy days. However, you can never be sure of these expenses, so you must keep on expanding the safety net of your savings.

    On the other hand, if you have no emergency savings, you should begin as soon as possible. Experts suggest that at least six months of living expenses must be set aside as an emergency fund, which is a thumb rule. However, if you are able to save more, the better it is.

  • Provides Better Insights on Investment Options

    Investments are necessary, they act as a secure wall to the uncertainties of future. Proper financial planning helps in prioritizing your financial goals and investments that can help you reach these goals. As you prioritise your financial goals after having a baby, make sure you take a fresh look over to your investment portfolio. You may find that some adjustments in your investments have become necessary. You will also find that many investment options that did not seem appropriate in the past will start making sense now.

    By assessing your needs and evaluating your current investments, you can plan on what instruments you can invest in. One such investment is a ULIP. It provides you wealth creation option while offering the security of life cover. ULIPs also offer you with the option of choosing funds that you wish to invest in, based on your risk appetite. Moreover, after investing in ULIPs, you can avail tax benefits under Section 80C of the Income Tax Act. You can easily calculate the amount of sum you need to insure with the help of a ULIP calculator, based on your current needs and situation.

  • Aids in Saving for Your Retirement

    Most of the times, in the light of new expenses you tend to forget about saving for your own retirement. It is essential to save for your child but leaving your future expenses astray is not a smart thing.

    Many people tend to squirrel away most of their money on their child’s higher education, ignoring their retirement planning, which is a wrong approach. You can borrow money for your kid’s tuition fee, but not for your retirement. Your child will likely have more than one way to pay for college, but you can’t make up for lost retirement savings. So, always include your retirement in your financial planning.

Concluding

Having a baby is a beautiful phase that sparks many changes in your life. As you set milestones for your future financial needs, do not forget to consider the extra costs that come with raising a child. Regularly viewing and refining your financial needs will not only help in taking care of your child but also securing your future. So, set a financial plan that will help you achieve what you want without any hassles.

Secure your family’s financial future @ Rs.20* per day with Future Generali Flexi Online Term Plan! Get a Quote

*Premium for 30 year old, Non Smoker Male. Policy Term: 30 years for Basic Life Cover option inclusive of Goods & Services Tax. UIN 133N058V03

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Future Generali Cancer Protect Plan