A child’s wedding is one of the most important events of a parent’s life. You dream of hosting a lavish event to mark a new beginning of your child’s life. And since time flies faster than you think, it is important to plan for a grand celebration while your child is still young.
“If there must be trouble, let it be in my day so that my child may have peace” – Thomas Paine.
As rightly stated by Mr Paine (a famous English-American political activist, author, political theorist and revolutionary), this is what every parent wishes for. As a parent, you not only want your child to have a sound education, but also celebrations on important occasions for your little one, not to mention a grand wedding. But in order to fulfill these desires, it is imperative that you follow the right approach towards planning for your financial goals.
While planning for your child’s needs, it always pays to start early. This is because if you start saving and invest early, it will give you a larger time horizon to meet your financial goals (such as child’s education and marriage) and even build a bigger corpus.
Let’s take an example…
Example: Mrs Gupta has a daughter aged 2. She wants to create a marriage corpus that should be ready for her daughter in 22 years. Currently, Mrs Gupta imagines that she would spend Rs 15 lakhs on her marriage if it were happening today. How much would she need to save for her daughter’s marriage every month to get her married after 22 years?