Financial Tips For New Mothers To Secure Child's Future

Mother's Day 2025: Motherhood is a life-changing journey that brings in a new set of priorities and responsibilities. However, what many new parents don’t anticipate is the financial cost involved in properly raising a child.

As such, it’s wise that parents start planning for their child's future well in advance to adequately prepare themselves for any financial responsibilities and challenges that come with raising a child.

Harsh Gahlaut, co-founder and CEO, FinEdge shared with Outlook Money a few financial tips for new mothers to secure their child’s future.

Start Early

One of the most meaningful things a new mother can do is start planning early for her child’s future.

Says Gahlaut: “Even modest investments, if started in time, can make a real difference. For instance, a systematic investment plan (SIP) of Rs 5,000 at 6 per cent compounded annual growth rate (CAGR) over 20 years may give you Rs 23 lakh—but if that return improves to 12 per cent, the same investment can build a corpus of around Rs 50 lakh,” he says.

Understand How Inflation Erodes Your Savings

Inflation slowly erodes your savings. While Rs 10 lakh may seem like a sufficient education fund today, in 15-20 years, it may fall short due to rising inflation. For instance, if the annual inflation rate for education is around 8 per cent, the cost of a Rs 10 lakh degree today could rise to over Rs 46 lakh in 20 years.

Gahlaut adds: “What feels adequate today might not be enough when the goal arrives. This is why getting the math right to understand how much to invest, where, and for how long is essential.”

Don’t Plan Your Child’s Education In Isolation

While it’s natural to prioritise your child’s education, Gahlaut cautions against focusing solely on one financial goal.

“An education fund that exists without an emergency buffer or clarity on other life goals can easily get compromised,” he says.

Let’s say you have saved Rs 15 lakh for your child’s education. But if you haven’t set aside any emergency savings, and an unexpected medical emergency or job loss arises, you may have no choice but to withdraw money from the education fund. This can derail your entire plan.

“A good investment plan identifies what matters most to your family and puts it in order of priority,” he says.

Get Investment Expert’s Advice

Getting professional advice can help turn your savings goals into a clear plan. Apart from basic investment advice, professional advisors can help you factor in inflation and avoid shortfalls by estimating realistic future costs so you are better prepared. The advisor can help you ensure you are also covered for emergencies, healthcare, and your own retirement—so your child’s plans aren’t disrupted later due to unplanned financial pressure.