Children should also be taught the difference between savings and investment, and a good place to start the latter is recurring deposits
I am 40 years old. I have recently started investing in mutual funds for the long term (15-20 years) with a few goals in mind. For retirement and wealth generation (Reliance-Small Cap fund, direct plan; Rs15,000); and daughter’s education and marriage (SBI Bluechip Large Cap fund; Rs15,000). If needed, I will shift these to a balanced fund after 10-15 years. I also have Rs5,000 SIP in L&T Tax Advantage fund direct plan. Apart from these, there is Rs2 lakh in fixed deposit (FD), Rs2.5 lakh in PPF and Rs2.8 lakh in PF. I have ancestral land (2 acres) in a good locality. I have term insurance of Rs70 lakh and Rs63 lakh coverage from the employer under group insurance. There is survivor benefit for my daughter (4 years old). My wife is no more. I have Rs10 lakh health insurance, and Rs2 lakh health cover for my parents.