Financial Planning at the time of Child’s Birth

Whenever we plan for our child, we want make the best full proof financial plan. Ultimately it is a investment plan linked to our emotions. As soon as hear the new born baby news, there are a lot of so called insurance agents, planner approach you for your loved baby’s future plan. Today, a lot of children link product available in the market. Often we tend easily to subscribe these plans without proper understanding the product and charges. No matter how many books you read or how many financial classes you take, when your little bundle of joy arrives, you are filled with happiness and a sense of fulfilment and at this step you take a decision with emotional wave. Today I am not going to talk about any particular child product or financial product for your child’s future. We will discuss today how well we prepare ourselves financially and learn some basic guidelines when expecting a baby.   

After knowing the news about that you are expecting baby ask yourself this question do you also prepare yourself financially? Many first time parents get so caught up in the emotional wave of having a baby that they often tend to overlook the financial aspect of this new responsibility.

Budget Analysis

Financial requirement do not start after the baby is born, but even before the baby arrival. There are many small things you need to take into consideration before and after the birth of your child. Keeping both the phases in mind will help you to create a more financially secure future for not only your child but also for your family.You need to re-organize your budget, as you will be spending on pre-natal care and on medical visits to the doctor. Know the areas where you can avoid or save and use those funds for the new expenses that will arise during pre born baby stage.

Professional Life

 Planning properly your professional life is also very important. You will be taking leave from work during and after the birth of your child. While many companies now offer paid maternity/paternity leaves, check as to how many leaves you can take and how it will affect your monthly salary. This will also help you to reorganize your budget and your expenses.

Rework on your insurance:

Keep in mind insured yourself with sufficient sum assured. Do not subscribe a policy on your child’s life. You don’t require policy on your child’s life. This is a very critical stage of financial planning. You need to be prepared with the appropriate insurance plans before, during and after the birth of your child. If you are already investing in insurance for your spouse, the expenses would be covered in the same plan, as it is not possible to take fresh insurance during pregnancy. For calculating right sum assured of insurance take a help of financial planner. A certified financial planner can help you to understand how this investment can help the mother and the child during various stages and how the cost can be covered with the right plan.

Replan your Goals :

 Reassess your all future goals and make sure whether you are able or not to finance your goal. You may not be able to fulfill some of your goals and dreams. Instead of giving up on those, try to postpone the same, and invest a part of your resources for your child. Your certified financial planner can help you to move some of these resources and yet help you fulfill your goals. Make sure you should have an emergency fund also. This could be used for those unknown events that take you by surprise. It is best to ask a certified financial planner a proper method to go about starting a contingency plan, as they will make sure you do not use your current resources for the same. Make sure you build a plan for money nest for your child’s future’s need like education and marriage. While it is ideally a better option to create a separate plan for education and marriage, you can choose a financial plan that will allow you to invest as per your choice.


At last keep in mind your child is an extension of your life. You would only want what's best. So take the step to secure your child's life and bring your baby into a world of financial freedom.

If you have any query regarding investment please feel free to ask.

Regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com