This Financial Planning is done basis on the Indian structure – PPF, SSY, Gold

Who can read this post

Whoever is ready to invest in the child at the earlier stage


If you have a newborn child, then the below assumption works better

  • Higher Education.
  • Destination Wedding.
  • Jewelry for weddings.

Higher Education

We always plan for the worst-case scenario, if she wants to study outside India approximately it will cost 20Lakh(Including the travel and tuition fee).

Current Value = 20Lakh

Future Value(After 21years considering Inflation and assumption) = 40Lakh(approximately)

Wedding Spent

Its average cost is around 15Lakh not a destination wedding but a local wedding with A/C Hall(For Two-tier cities).

Let’s assume we need 40Lakh to consider inflation and other stuff.

Jewelry for weddings.

I’m not going to lie here, for the sure Family member would want to spend some money specifically on Gold Jewelry. Here is the assumption a family is going with 50 Savaran(50*8grams = 400grams)

Current value of gold is 4800 * 400 = 20Lakh(Approximately)

Assuming an increase in Gold pricing

For ex: In 2000 gold price is Rs. 4400/10gram now(2022) its Rs. 48,720/10gram the future value will be around 4,87,200/10gram

The future value of gold is 48720/gram * 400 = 1,94,88,000

So approximately you need to plan for 3crores for your child.

How to invest/plans in 2022 for a child

For Gold

Start Investing in Gold(Make sure to go for Physical Gold) by starting this month, plan like below

Per month plan to buy 2grams for the next few years on your need, so approximately

2*12*20 = 480 grams

I would suggest going for Gold Scheme which is available in different Gold Jewellery shops. Recurring investment is much needed in this case.

For Higher Education

Choose PPF or Mutual Fund investment

Start earlier to have a better interest in PPF -> 1.5L/Year * 15 = Around 40L(Considering the current Interest rate)

If it’s Mutual Fund SIP -> 8000/month * 15 = 40L(Considering rate around 12%) but the Mutual fund has risk involved after 15 years anything can happen.

The safest way is PPF

For Wedding

Go for SSY(Only applicable for girl child) -> 1.5L/year for 15 year = around 60L(Considering the current Interest rate)

The maturity period of the scheme is 21 years. To know more about the calculation

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