How to prepare for Birthday Party Fund ?
Celebrating the birthday of the Kids can be a personal delight for Every Parents. At the same time, the cost of a Birthday Party can have little impact on the Financial head of the Family.
The Birthday Celebration of their Kids is much more important than anything else for some Parents. In this situation, when a cost is incurred as a Birthday Celebration, it will affect the Budget for a Family in the near term.
However, this is a positive thing if we plan ahead of time. Planning for the Celebration and save for it one year before is worth a lot.
For example, the proposed expense (Budget amount) for your Kid’s Birthday Celebration is Rs. 15,000 (Lets assume).
Time Horizon: 12 Months
If you are starting with a monthly SIP of Rs. 1200/- in Bank Recurring Deposits or Mutual Funds, and the expected return is 7 Percent, then you will achieve the Target of Rs. 15,000 for the Kid’s Birthday Celebration. So, we can named it as ‘ Birthday Party Fund ‘.
You can also try another Method – Give your child 5 rupees per day and tell them to put in the Savings Box (Piggy Savings Bank) or Personal Hundial. At the end of every month you will get an amount of Rs. 150/-.
Open a Bank / Postal Recurring account or Mutual Fund account and then invest that Rs. 150/- monthly. With a maturity amount at the end of year, you can buy things what your Child need. This will help them to follow Financial Discipline.
Although the Savings or Investing amount may be low, it is a pleasure to have you at Maturity 🙂
For a Short term Savings, one can utilize the Bank or Postal Recurring deposits or Liquid funds Scheme in Mutual Funds. We can similarly plan for our other Festival Expenses, Family Trip (Tour) or any other short term needs.
If we plan ahead and make any savings or investments for our Future Expenses, we can escape from the short and long term financial problems.
Kindly share your views / comments with a smile 🙂