• 29 Mar , 2023
  • Blog

How to save money for kids: Best saving solutions

If you’ve laid in your bed wondering, “Will I raise a good kid? Will I be able to provide for the kid? you are not alone. Most parents juggle between these issues. As a result, they look for solutions to secure their kids' lives financially.

A baby in your life is a life-changing event- emotionally, physically, and even financially. Childbirth might leave you with mixed emotions- excitement(of the new member) with tension or even anxiety (when you think about the future). As a parent, you plan for their future way before they start their life. Some parents start preparing even before the kid is born. Between all this, the most confusing area for most parents is saving money for their kids ' future. 

While you may be pondering upon the best way to save money for a kid's future, there are chances that you see too many options. Sure enough to get you confused, isn't it? Here’s a solution. Check out this article that will help you with the options of saving money for your kids' futures. 

Let's get started. 

Why Save Money For Children’s Future 


  1. Expenses related to kids start as soon as the news of pregnancy breaks, till the time the kids become financially independent and stable. As a parent, your first wish is to give your child the best future through all possible means. It is crucial to understand the best ways of saving money for kids as- 
  2. The cost of living a decent life is getting higher day by day. To give your child the access to best of all - education, clothing, food, etc. you will want money. And most expenses will be on the heavier side. 
  3. The cost of the best education forces many people to take on debt. By starting to save early, you will ensure that a load of debt is never on the kids' heads. 
    Saving money for kids as early as they are in elementary schooling ensures that you are always on the safer side and that your kid will have a better chance of having a decent life. 
  4. When the kid watches you saving money, they learn it too. This habit from a young age encourages them to have a secure life ahead. 

Now let’s move on to the best options for saving money for kids. 

Out Top Suggestions On How To Save Money For Kids

Fixed Deposit 

FDs are a great option for people who can keep their money with banks and NBFCs (non-banking financial corporations) for a specified lock-in period. FDs are known to be a safe money-saving instrument that gives you multiple flexibility options. They are often used by parents looking for ways how to save money for kids. 

You have the freedom to choose the amount, lock-in period (number of years), and reason. You can create different FDs for varied reasons. It comes with a fixed interest rate that will be given along with the principal amount on maturity. People create FD for many reasons like college, marriage, etc. The usual interest rate for an FD is 5.75%-6.75%. 

Recurring Deposit 

In a fixed deposit, people need to give the entire amount at once. If you are not ready to give the entire amount in one go, you can opt for an RD or a recurring deposit. There are multiple places where RDs can be created. 

A recurring deposit is similar to a fixed deposit, but instead of a lump sum, the entire amount is divided into monthly payments for a specified number of years. Once the RD matures, you can take the entire amount along with the interest accrued on it. It is one of the good ways to save money for kids. 

Gold Investment 

Gold Investment

You can find thousands of reasons to save money in gold, but one of the major reasons is that it usually appreciates over time, and can be easily converted into cash when needed. Gold is an asset that everyone treasures. 

Parents use a part of their existing reserves to buy gold coins, gold jewelry, and now even digital gold. It's a great investment as by the time your child grows up, the value of gold will go up significantly. Two major types of gold investment are-

  • Digital Gold: 

If you are buying gold for investment purposes, a great way is to keep it in digital form. Digital gold enables its owner to invest low amounts, and even start a SIP for the same. If you wish to buy digital gold, you can check out our website. 

Digital gold can be bought online, kept safe online, and even delivered to your home. It is a great saving option for parents who wish to steadily invest the amount in gold and over time accumulate wealth. If you plan to invest in digital gold, make sure to check the credentials of the company( certifications, options, and support). 

  • Physical Gold:

If you have a lump sum value and wish to invest the traditional way, you can choose physical gold. It is available in coins, bricks, and ornament forms. 

Government Schemes 

There are various schemes and options run by the government that offer great saving deals. These can be instruments (gold bonds, etc.) and schemes that are run by the government. You can look for a child-specific scheme or even a general scheme that can benefit your child over the long term. Government instruments are safe, and you don't have to worry whether they could be a fraud. 

Bank Account

Start a savings account in the name of your child and transfer it to their name once they are wise enough to use it. You can even use the savings account to track the expenses. Efficient tracking leads to smart expenditure and therefore, smart savings. You can even encourage your child to keep his money in the account so that they also learn about savings from their childhood. 


Is how to save money for kids a constant question? One option is having insurance like health and life in their name. Various insurances give you an accumulated amount on maturity. This can be a great option for your kid when they attain a certain age. The most common insurances are money-back insurance, life insurance, ULIP, Endowment plan. 

Final Words 

Saving money for kids is a constant dilemma for parents. Be it a gold investment or other instrument, savings are a must. If you don't focus on it from start, you will have issues going further when child-related expenses start piling up.

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