If you’re married and have children in your life, you’ll agree that no matter what you’re doing at any given moment, the future of your kids is always in your thoughts. After all, it is natural for parents to want to secure their children’s future and equip them for their life in the best way possible.
As a parent, if you are looking for the solution to bridge the gap between merely dreaming of a bright future for your children and actually making that a reality, we have two words for you - financial planning. A Child's Future Planning Calculator (CFPC) is highly relevant here.
What is the CFPC?
The Child's Future Planning Calculator (CFPC) is another online calculator that you can use for free online. It helps you determine the amount you need to save to meet the specific goals you have for your children’s future.
The Child’s Future Planning Calculator helps you plan for the two major goals in your child’s future - namely their education and their wedding. For each of these goals, the child plan calculator takes different factors into account.
Here’s a list of the parameters the Child’s Future Plan Calculator uses to compute the amount of funds needed for different goals.
The savings needed for your child’s higher education, calculated taking into account the following factors:
- The current age of your child
- The stream of education your child wishes to pursue for higher education, if applicable (like science, commerce or arts)
- The city in which your child will pursue their higher education
The savings needed for your child’s graduation or post graduation, calculated taking into account the following factors:
- The current age of your child
- The career or course that your child aims to pursue (like doctor, engineer, architect, designer, etc.)
- The country in which your child will study
Other common factors that affect the amount you need to save for your child’s education (irrespective of the stage):
- The current estimated cost for your child’s education
- The age at which your child will need the funds for their education
- Your existing total savings
- The amount you are already saving monthly to meet this goal, if any
- The expected rate of return from your investments
The savings needed for your child’s wedding, calculated taking into account the following factors:
- The current age of your child
- Your child’s age at which you expect to host your child’s wedding
- The current estimated expenditure for your child’s wedding (as of today)
- Your existing total savings
- The amount you are already saving monthly to meet this goal, if any
- The expected rate of return from your investments
Why do you need it?
Any miscalculation in planning for your child’s future could prove to be a costly mistake. For instance, if you do not have the funds needed for your child’s education, they may not be able to pursue the course they are passionate about. Or, if you have not saved up for their wedding, they may not be able to experience the wedding of their dreams.
A Child’s Future Plan Calculator shows you early on how much you should save, so these goals can be achieved effortlessly. Based on the number the calculator arrives at, you can purchase a child insurance plan to meet the costs of these major milestones.