Financial 'To Do' List For Your 18 Year Old Child

Once your kids attain 18 years of age, they are no longer just children. They are young adults, young individuals forming an identity of their own. They are ready for college, ready to explore new ideas, travel to new places, meet new people and build up their identity. It is a crucial phase of their life. In many cases, this is a more formative stage than their growing up years. As they begin to form an identity of their own, they gain clarity on their interests, skills and inclinations. It is a chaotic period in their lives, with a plethora of changes happening simultaneously, so let us try to break it down to the various items that need to be on the financial to-do list for you as your child reaches the much-anticipated age of 18.

• Young adulthood is a period when the kids begin to discover their personal and professional interests. As they head out on this exploration, there are certain expenses involved which would necessitate investment in the best child plan available. Education is an expensive affair these days.  Reportedly1, the cost of education in India is rising much faster than the average rate of general inflation. It is estimated that under the current scenario the average cost of an MBA degree will be around Rs 50-60 Lakhs by the year 2025, that of an engineering degree will be around Rs 25-30 Lakhs. Schooling cost would have doubled. The narrative is quite similar when it comes to medical and healthcare access and affordability.
  
  If you want to ensure a safe future for your kids, it is important to invest in building a corpus to be able to cater to their education and health needs through a plan like the PNB MetLife College plan. A robust insurance policy in the form of a child education plan can help you in the creation of an assured corpus for your children, by ensuring a safe future for them even in your absence.
  
  It offers systematic money back during your child’s growing years. And when the time comes, it brings you a lump sum bonus at maturity to ensure that your child’s education expenses are covered so that he/she does not have to compromise on their dreams at all. The child education plan adds a layer of protection through the life insurance element, making it the best child plan. According to this child education plan, in the event of your untimely demise, the death benefit will be paid to your child along with accrued bonuses. Further, all future outstanding premiums will be waived and money back payouts will be paid to the child as scheduled.
  
  
• As a kid, we are considered minors according to law, and if we have a bank account, it is handled by an elder - one of the parents or a guardian. Thus, it is possible to have a bank account as a minor, but one may not have full control over it. But once your kid turns 18 he/she can handle their account individually, so that they can learn to manage their funds better and be more financially aware and responsible.

Legally, they are also allowed to work and earn money - which means that an application for the PAN card should also be considered as soon as possible. 

Among other documentary work, a driving license is another thing they can now have. The freedom to be in charge of the steering wheel and the brake is a very metaphorical and literal manifestation of how they can drive and be responsible for their own life now. 

A little financial help from parents in a child education plan corpus would let them pursue their dreams and make their future financially stable. To know more about term plan, term insurance, long term savings & retirement plan visit PNB MetLife website.

¹ Source: http://timesgraduates.com/rising-cost-of-higher-education

Disclaimer: 
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

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