Fatherhood changes your life in more than one way. Besides the usual nappy changes and the sleepless nights, it also brings in the undeniable realisation that you need to get your financial life together. For first-time fathers, this Father's Day can be the perfect moment to start building a bright future for their child by making the right financial plans.
The Budget Reality Check
For first-time fathers, the reality can hit hard. You may see sky-rocketing expenses on childcare – formula food cans, diapers, doctor's visits, baby clothes, immunisation, and so on.
So, first-time dads should start looking at household expenses with sharper eyes. They might need to cut down on online food orders, eating out, and regular weekend trips to budget for childcare and future education expenses.
Invest With Intent, Not Impulse
Before fatherhood, investing might have been a mix of luck, memes, and FOMO. But that game doesn’t cut it when you have got a child counting on you. Goals come into focus. It’s no longer “what stock is hot right now?” It’s “how do I fund my child’s college without taking out a loan in 2038?”
That shift rewires your relationship with money. You stop chasing returns and start building a plan. Market dips also stop being panic triggers and become buying opportunities for long-term investment.
The Education Time Bomb
If you think education is expensive now, wait for a few years. Urban education costs are rising at a very fast rate, almost as fast as medical inflation. A college degree that costs Rs 10 lakh today could cost Rs 40 lakh in 18 years.
If you are planning to send your child abroad for studies, the cost could be even higher.
Start investing meticulously for your child’s higher education over a long term (15-20 years) so that you have a dedicated corpus when you need it for his/her higher studies.
Wedding Costs Without the Wipeout
Weddings in India aren’t getting cheaper. So, you can consider investing separately for your child’s wedding so that you do not end up tapping into your Provident Fund, emergency fund or retirement kitty to fund your child's wedding expenses.
Plan Your Own Retirement
Here’s where a lot of new fathers mess up. In the rush to provide everything for their children, they forget about themselves. While they account for their children’s education, wedding, and other emergencies, they often forget about their own future.
Depending on your children when you are old is not a plan, it's a burden, both for you and for them.
Building your retirement fund is not selfish, but a smart financial move. As a smart father, you would want your children to thrive, not burden them with your bills.
So treat retirement like a serious long-term goal. Take risks when you are young, stay consistent, and never compromise on your future trying to fix everything in the present.
The Bigger Picture
Fatherhood isn’t a phase, it's a lifelong job. And your money choices today will echo for decades. Remember, that you are not just earning, but you are also building for your child's future.
So, this Father’s Day, skip the ties and the mugs. Sit down with your finances. Look hard at where your money’s going, and where it should go. Because the best gift you can give your child isn’t just love, it’s security, stability, and a future that’s properly funded.
