I Wish Someone Had Told Me to Invest in My Child's Name
Saving for them is not the same as saving in their name. Here's the difference that cost me ₹2.7 lakh.
The day my daughter was born, I did everything right. Called the relatives. Distributed sweets. Started an FD — "for her future." What I didn't do? Open a single account in her name. Because nobody told me I could.
Saving for them vs. saving in their name
For years I kept money in my own mutual fund, telling myself it was "earmarked" for her. But earmarked isn't the same as hers.
I dipped into it once — for a car down payment. Just "temporarily." That's how earmarked money works. Life gets in the way.
When the account is in your child's name, something shifts. It feels untouchable. It compounds undisturbed. And when they turn 18, it's not a gift you hand over — it's wealth they already own.
The number that stings
₹1,000/month SIP started at birth compounds differently than the same SIP started four years later. The math is unforgiving.
₹2.7 lakh. Gone. Not because I didn't care — because I didn't know.
₹1,000/month SIP started at birth → ~₹7.5 lakh at 18. Same SIP started at age 4 → ~₹4.8 lakh. Four years. ₹2.7 lakh. Gone.
The best time to invest in your child's name was the day they were born. The second best time is today.
Start small. Start in their name. Start now.