May 2023
4 mins read

7 Ways to Secure your Grandchildren’s Financial Future

As you enter retirement, you will have plenty of time to plan your finances carefully. If you have already met all your personal finance goals and your dreams, you may start thinking about others in the family. Many people want to make provisions for their grandchildren as part of their goal planning. They either want to leave their wealth to them, or want to pursue financial planning to provide better financial security for their grandchildren.
This goes beyond just offering cash gifts for birthdays or engaging in estate planning. It involves assistance like funding their college fees, helping them pay their EMI or helping them get started with investment planning .
Here are 7 ways you can secure your grandchildren’s financial future:

Help them start their first savings account

It’s never too early to start learning about saving. If you’ve met all your liabilities and have a strong retirement corpus to manage your expenses, you can put some money into a savings bank account for your grandchildren. A savings account may be a good place to start, as it will keep growing the money over the years. 

point 1

Help them save for college

The cost of education, especially college overseas, can be exorbitant. A great way to give your grandchildren a leg up is to create a fund for their college education. This way, they will not have to begin their working lives with a loan. If your grandchild is still young, you can keep adding money to the funds which can accumulate over the years. Investing in equity mutual funds could help you realize these long-term financial planning smart goals. 

point 2

Help them pay their college fees

If your grandchildren are already going to college, you can directly set up an investment fund that they can draw on for their college fees.

point 3

Help them save to buy a home

If you want your grandchildren to be truly independent, you can create a fund with your savings to help them buy a home. With rising housing costs, your fund might be able to help them make the down-payment. 

point 4

Help them meet their EMI goals

You can also help your grandchildren pay the principal on their home loan. A running fund could help them meet their ongoing EMI costs. 

point 5

Create an investment account

If you want to encourage them to start investing, you can create an investment account for them and introduce them to stocks and mutual funds. 

point 6

Initiate them into financial planning

Financial independence relies on a strong knowledge of financial and investment planning. Teaching your grandchildren about personal finance, or funding their planning courses with a certified financial planner, can be a great way to make them financially sound and independent. 

point 7

Your grandchildren are a treasured part of your family and one of your best legacies would be to leave a secure future for them. Start with a sound personal finance plan and you can help them stand on their own feet. 

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