All About Child’s Future Planning Calculator | ABSLI

For every parent, their children's future and well-being are among the top priorities in life. Right from the day their children are born - and perhaps, even from before this point - parents constantly think of the measures they need to take to keep their children happy and fulfilled. This includes securing their children's future by giving them the right education and by creating a financial safety net for them.

If you are a parent, you will no doubt agree that these milestones are the major long-term goals on your list. Here is where financial planning for your child's future is crucial.

Apart from meeting the everyday needs of their kids, parents have two major milestones to take care of in their children's lives - their education and their wedding.

These are not easy goals to accomplish. If your kid is around 5 years old now, they have a good 12 years or so before they attain college-going age. By that point, thanks to inflation, the costs of higher education are likely to only rise. As for their wedding, even if it is possible to make it a small and affordable affair, most parents and kids will naturally want to go all out and make the most of this special occasion.

So, between investing for your child's education and saving up for their wedding, you are looking at a set of financial goals that may involve lakhs or even crores of rupees.

Financial planning for your child's future includes figuring out how much you need to invest today, in order to meet these two major milestones easily. If you were to manually compute this number, you need to account for a wide range of factors and make several assumptions. That could be tedious and challenging, not to mention the possibility of making errors in calculating the numbers.

Fortunately, there is a nifty little online tool that can help you with planning for your child's future. Say hello to the 'Child's Future Planning Calculator.'

The Child's Future Planning Calculator is an online financial tool that you can use free of charge. It can be used to compute the amount you need to save up for the two major goals in your child's life, namely their education and their wedding.

The ABSLI Child Education And Marriage Planner, for instance, helps you compute the amount of financial coverage you need to save for your child's education and their wedding. To do this, the child plan calculator takes into account a wide range of factors. Here is a preview of the parameters used to calculate the corpus needed for the two goals.

Factors needed to compute the cover needed for your child's education:

• Your child's current age


• The level of education that you wish to save for (higher education, graduation or post graduation)


• The education stream your child may choose (in case of higher education)


• The city in which your child will likely study (in case of higher education)


• The career that your child may pursue (in case of graduation/post-graduation)


• The country in which your child will study (in case of graduation/post-graduation)


• The current estimated cost of your child's education


• The age at which your child will need these funds


• Your current total savings


• The monthly savings you are currently making


• The expected rate of returns

Factors needed to compute the cover needed for your child's wedding:

• Your child's current age


• The age at which your child will likely get married


• The current estimated amount you would spend on your child's wedding


• Your current total savings


• The monthly savings you are currently making


• The expected rate of returns

As you can see, the child's future planning calculator takes a whole host of factors into consideration. It may seem complex to you, but all you need to do is input the details needed correctly. The calculator will do the rest of the job for you.

To help you understand this more clearly, let's take up a couple of examples and compute the corpus needed for your child's education and wedding.

Scenario 1: Saving up for your child's graduation

Say your child is 5 years old now, and you want to save up for their graduation, by which time your child will be around 18 years of age. This gives you 13 years to build the corpus for this goal.

Here are the other parameters we'll consider –

Once you enter these details, here is what the child investment plan calculator will show you –

Scenario 2: Saving up for your child's wedding

Say your child is 5 years old now, and you want to save up for their wedding. You assume that your child will be at least 23 years old when they get married. This gives you around 18 years to build the corpus for this goal.

Here are the other parameters we'll consider –

Once you enter these details, here is what the child investment plan calculator will show you –

See how detailed and thorough the results from the child plan calculator are? Once you get these insights, you can start your investment planning accordingly. One of the most financially sound ways to save up for your child's future is by investing in a child plan.

A child plan is essentially a life insurance plan that is specifically designed to help you meet the major milestones in your children's lives. It offers guaranteed¹ benefits at the end of the policy term, so you can rely on these financial payouts to fund your child's higher education, wedding, graduation, or any other milestone that turns up as they grow older. In addition to this, a child plan also secures the future of your children in case something untoward happens to you, thanks to the life cover it offers.

You can make use of a child insurance calculator to compute the amount of additional cover needed, as explained above. Then, you can use the information you get to purchase a child insurance plan that offers the requisite amount of coverage.

Using a child education plan calculator or a child wedding plan calculator can benefit you in more ways than one. Check out the top reasons to make use of this financial tool to save up for and secure your child's future.

• It helps you prepare a budget easily
  Your children's education and their wedding are life goals that rely on a number of variable factors. You need to make several assumptions before you figure out how much you need to save. Making these calculations manually and preparing a budget from those figures can be time-consuming and prone to human errors.
  
  With a child plan calculator, you get all these details with just a few clicks. The online tool also gives you a great deal of clarity on exactly how much you need to save up each month to achieve your goals. This means all you need to do is start saving up for the future.



• It accounts for inflation
  One of the key benefits of using this child future plan calculator is that it accounts for inflation. This helps you stay ahead of the curve and invest for a more accurate possible cost of your child's wedding or education. If you don't account for inflation, your corpus may fall short of the cost at the time of your child's wedding or when they are ready to go to college. This, in turn, will lead to more debts and loans, all of which can affect your financial situation adversely.



• It is extremely user-friendly – and free to use
  You get all of these details from the child insurance calculator by just entering the details required. That's it! There's nothing more that you need to do. The other great thing is that you can use this financial tool for free.
  
  This means you can run multiple iterations of different scenarios to see how the results vary if you change the estimated costs, the type of career, the age of your child's wedding and the country in which they will study.

If you are planning to have kids, or if you already have one or more children, ensure that you make use of the child's future planning calculator to determine the amount you need to start saving on a monthly basis. The sooner you get started, the more secure your children's future will be.