How to secure your daughter financial future

How to secure your daughter financial future

As parents, you want to offer your kid the finest of everything, giving them the most acceptable nutritious options, instilling them with good habits, exercising safety precautions, reviewing their academic achievement, and ensuring that their needs are met at all times.

While people continue to be successful as parents for their immediate needs, they often forget a crucial part of parenting: ensuring their daughter’s long-term financial security.

  • SIPs in equities funds must be started for long-term aims.
  • Higher education and daughter’s marriage are all events that will occur later in life, but with the current high inflation rates, it is critical to make preparations for them as soon as appropriate. Traditional loan products such as PPFs and FDs will not assist in the accumulation of the necessary amount. However, initiating goal-specific SIPs will ensure that a substantial corpus with modest monthly contributions is built over time.

    Elss are perfect tax saving investment options under section 80 c. For any goal, it is mandatory to have a balanced combination of large mid and small caps – depending upon your risk profile and good funds from these categories have delivered way more return than elss funds.

  • Creating a bank account in the name of your daughter
  • Creating a bank account in the name of the daughter and putting their pocket money as well as other funds obtained as gifts on birthdays and other events would ensure that the resources are not wasted. It will assist daughters in learning about financial management since they will grow accustomed to spending, organizing, and collecting from a young age.

  • Saving money on behalf of your daughter in a fixed deposit
  • Investing in stocks on a continuous basis is critical for long-term capital growth. Nevertheless, because equity investments include some risk, offsetting your investment with debt is necessary to create a safety net. Making several FDs with varying maturity dates with whatever surplus you have can assist assure the timely availability of cash in the future for critical financial landmarks. It will also guarantee that the excess is not used to cover any unexpected bills or luxuries.

  • Make sure you’re insured.
  • Understand that your life insurance demands increase dramatically with the birth of a daughter, as the financial risk linked with your demise rises dramatically. Take some time to re-evaluate your life insurance needs, taking into account not just the extra monthly expenses that come with having a daughter but also the cost of achieving her long-term ambitions. Calculate the new coverage needs and fill the gap with a simple term plan.

  • Invest in Child Insurance Plans
  • Child insurance plans may well be your best choice if you’re seeking a great long-term investment strategy for your daughter. They’re a hybrid of insurance and investment that ensures a stable future for your daughter in the case of your unexpected passing. Such plans invest a percentage of the premium to earn above-average returns paid out at maturity.

  • Consider investing in Sukanya Samriddhi Account (SSA)
  • The Indian government’s investment plan will enable you to save enough for your daughter’s life phases such as university, marriage, and so on. One can begin investing with a minimum of Rs 1000 in an interest-bearing account of a 7.6% interest rate and matures when the account holder reaches the age of 21.

  • The final but most crucial phase is estate planning.
  • Preparing a will is one of the most essential and reasonable activities you can do to guarantee your hard-earned possessions are cared for according to your intentions when you pass. It is much more critical to secure your assets and influence your child’s future care if you have a daughter. When making plans for your life, don’t forget to plan for your demise.

  • Evaluate your progress along the way
  • Just because you’ve established goals and plotted out a strategy doesn’t guarantee it’ll always go as planned. Weekly or monthly reviews of your performance should be conducted to ensure that your goals remain reasonable and that you do not fall behind to the point of giving up. Minor adjustments might help you stay on track to meet your financial goals.


    As a parent, one of your most important life goals is to ensure that your daughter has a healthy and pleasant tomorrow. We all want to provide our daughters with the resources they need to live happy lives. However, the beauty of life is that it is unpredictable, and we never know what life may toss at us. The most excellent way to guarantee your daughter’s future is to assist them in achieving their dreams and ambitions.

    CA Mukesh Gupta
    CA Mukesh Gupta
    Mukesh Gupta is the founder and director of Wealthcare. He is Fellow chartered accountant, Certified Financial Planner and Certified Public Financial advisor. He is in financial services industry since 1994. He conducts free money management sessions for corporates and associations on topics related to Personal finance. His previous engagement was with Birla Sunlife group. He regularly writes on topics related to Personal finance and occasionally appear on electronic media.

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