Monday, November 30, 2020
Home Business finance Father's Day: 5 Financial Lessons to Pass Onto Your Children

Father’s Day: 5 Financial Lessons to Pass Onto Your Children

Here are 5 financial learnings that fathers can gift their children

Part of taking care of your children also means teaching them how to cope with the various different stresses which come with adulthood. Fathers, often helm the finances of the family, and the should take it upon themselves to teach their children the responsibility of finances from an early age.

“As fathers, we believe it is our role is to guide and be a mentor to our children to shape their values and principles for life in the long run. We immerse ourselves into their lives, focus on their mental and physical wellbeing and stand responsible for their upbringing. Fatherhood has evolved from providing a secured financial future for children, to instilling invaluable experiences that help them become independent and capable of decision making. By reinforcing early positive behaviour and habit formation, parents can foster healthy financial independency amongst their children,” states V. Viswanand, Deputy Managing Director, Max Life Insurance.

Follow NewsGram on Quora Space to get answers to all your questions.

On the occasion of Father’s Day, the expert shares five early financial lessons to pass onto your children that help ensure they have a bright and secured financial future ahead:

Piggybank your pocket money

The first financial lesson to instill within your child is to start saving and planning early. By teaching them to put aside a chunk of their pocket money is a start towards healthy savings behaviour. Over time, as they start earning, these teachings will automatically prompt them to put aside a part of their salary in a savings or a fixed deposit account.

5 financial learnings that fathers can gift their children
Teach your children to put aside a chunk of their pocket money as it is a start towards healthy savings behaviour. Pixabay

Start smart, start small

Parents must encourage children to be financially smart. While starting early is one step towards financial independence, children must not worry about how little they are putting away. Often telling them that ‘Rome was not built in a day’ will encourage them to set aside small amounts to gradually build a corpus. After reiterating this, children will eventually learn to budget expenses and savings. A good thumb rule to remember is that 30-40 percent of income must be saved or invested to create a safety net should plans go awry.

Be behaviorally and financially disciplined

Most times, parents worry about behavioral discipline, but forget to equally focus on financial discipline. A strong foundation early on will enable them to systematically work towards their goals and objectives. In fact, prompting them to purchase financial tools such as term insurance policies will require them to put aside premiums every month and start the journey to a financially safe life.

Set goals, save for the long-term

Buying children the latest edition of a play station, a new phone or a laptop will lead them to believe that parents will always finance their aspirations. To nurture financial independency, parents must encourage children to plan ahead, set milestones and work towards fulfilling it.

5 financial learnings that fathers can gift their children
Buying children the latest edition of a play station will lead them to believe that parents will always finance their aspirations. Pixabay

Also Read: Sachin-Jigar Share their Thoughts on World Music Day

Do not let fluctuations scare you

We have been told by our parents that life is a marathon, not a sprint. The same learning should be passed on to children of this generation, who easily fall off track because of short-term requirements or indulges. Unseen hurdles are a part of life, but people must always stick to their initial investment strategies. Similarly, stock markets witness short-term fluctuations, but having a long-term mindset will do away with intimidation.

Parenthood prompts fathers to start planning right off the bat, draw up plans and set goals for their children. However, children are sometimes excluded from this. A good start to becoming a financially savvy family is to chart out aspirations with your children, while providing financial guidance through their early years to induce good long-term financial behaviour. (IANS)



Most Popular

The Italian Cultural Centre Unveiled Its First Post-Lockdown Exhibition

The Italian Cultural Centre unveiled its first post-lockdown exhibition titled "Absent-Present" in New Delhi. The exhibition began earlier this month on November 3 and will...

Researchers Developed A Decentralized Wastewater Treatment And Recycling System

A team of interdisciplinary researchers from Scotland in collaboration with the Indian Institute of Science (IISc) have developed an efficient decentralized wastewater treatment and...

Chandigarh To Get A Unique Environmental Landmark- The Museum Of Trees

Punjab Governor VP Singh Badnore will virtually inaugurate a unique environmental landmark in Chandigarh -- the Museum of Trees - to commemorate the 551st...

Guru Nanak Jayanti 2020: Interesting Facts That You Must Know About Guru Nanak

The founder of Sikhism, Guru Nanak was known for his social, political, and spiritual beliefs which were based on love, virtue, fraternity, and equality. ...

Kamalrukh Wife Of Late Wajid Khan Appealed For Anti-Conversion Bill To Be Applied In Nation

Music Composer, Wajid Khan passed away on June 1, 2020. Almost 6 months after his demise her Wife Kamalrukh has been harassed by her...

Influenza Infections Can Lead To Increased Risk Of Pneumonia

Researchers have now revealed that influenza infections can lead to an increased risk of bacterial pneumonia, which claims many lives around the world every...

Report: Healthy Demand Conditions Accelerates VF Sector’s Recovery

Demand for two-wheelers, tractors, and passenger vehicles has led to an accelerated recovery in the vehicle finance (VF) sector over the past six months,...

CPAP Machines Are Saving Lives Of Patients Hospitalized With Covid-19

Researchers have revealed that Continuous Positive Airway Pressure (CPAP) machines -- the existing medical treatment -- are saving the lives of patients hospitalized with...

Recent Comments