Four essentials of financial planning for first-time parents

New Delhi, July 23 Being a first-time parent is an exciting experience that is followed by a new set of responsibilities. At times, these responsibilities can be both exhilarating and exhausting. Most new parents prioritise planning for their child's daily needs, but it is also critical to begin planning the roadmap for securing their financial future.

According to a recent HSBC report, 55 per cent of Indian parents still provide financial support to their adult children. It is a highly placed statistic, making sound financial planning by parents critical at an early stage, which can greatly benefit their children in the long run by assisting them in achieving their milestones such as higher education, a better lifestyle, or investment in key assets, among others.

Here are four key financial planning essentials to help ease your future worries and foolproof your child's tomorrow:

Secured coverage with term insurance: Parents must ensure that they have adequate life insurance coverage in order to provide for their children as they grow older. A term life insurance policy is an excellent choice for this purpose. The term insurance policy will act as a backup plan, assisting your family in meeting their basic financial needs or liabilities if you are unable to do so.

Investing in new goals: Inflation can derail even the best-laid financial plans; therefore, you must invest in financial products that provide long-term returns that outperform inflation. To accomplish this, a strong yet flexible combination of investments and protection can assist you in getting started on the path to wealth creation for your child. Insurance companies provide a variety of plans, and if you want to build a corpus for your child, a combination of a Term Plan

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