10 Smart Actions Every Indian Parent Should Take, Once Their Baby Is Born.

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10 Smart Actions Every Indian Parent Should Take, Once Their Baby Is Born.

6. Start a Saving Bank account for kid
One of the best things you can do for the kid from the start itself is open a saving bank account for the new born the moment they are born. Almost all the banks have facility for kids to open their bank account. For example – ICICI Bank clearly mentions that any kid starting age 1 day to 18 yr is eligible to open a bank account called “Young Stars” with them.
3 reasons why you should open a bank account for your newborn kid.
Reason 1 – Put all the Cash Gift in the Kids Bank account
The moment your kid is born, for next many months and years – you will start getting lots of gifts in form of Cash. Often this money is not handled properly in families because of its small ticket size and it gets consumed here and there and finally evaporates. You can always make a rule that all the small/big money coming in the baby name (on their birthday’s or baby shower functions etc) will be deposited in the saving bank account opened for the kid.
Reason 2 – You can open dedicated long term investments for your kid’s future
Another reason why you might want to open a saving bank account for the kid is that if you want to invest for your kid long term education or any other thing. You can make sure you start the investments from the kid account itself. This way the account will be dedicated for that purpose and your volatile decision making will not impact the savings for kid. You can either invest in Kids PPF account through this account or do a SIP in equity mutual funds for long term investments needs.
Reason 3 – Your kid will learn about banking and personal finance from very start of his life.
Another good reason for opening the bank account for your new born kid is that once he/she turns up to 8-10 yrs, you can allow them to partially handle their own bank account and teach those banking aspects. Learning that they have their own personal bank account will make them feel good and also they will take keen interest to learn these things, which most of the people learn very late in life.
Bonus Tip: You can also apply for your baby’s PAN card within few weeks/months of his/her birth. Anyways you have to make it later, so why not in the start itself. It’s always a good practice to have a proof of identity in the start. It will be handy if you want to apply for other kind of documents like Passport, bank account, etc. 

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