Father’s Day 2024: Father’s Day is a perfect time to reflect on the valuable financial wisdom that fathers pass on to their children. Beyond emotional support and life lessons, fathers often provide practical guidance on financial planning. In an era where financial literacy is increasingly essential, Generation Z (Gen-Z) can greatly benefit from learning crucial financial planning tips from their fathers. This Father’s Day, let’s explore some key financial lessons that Gen-Z can learn from their dads, setting the stage for a prosperous future.
Key financial planning tips Gen-Z can learn from their dad
With Father's Day just around the corner, kids all over the world are planning how to surprise their fathers with different gifts or just make them feel special on a special day. But for fathers, it is always about how to guide their kids better so that they can flourish in life.
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We will also shed light on some of the new-age hacks that fathers can learn from their Gen Z children to save big in today's time.
Father's Day (which will be observed this year on June 16, Sunday) is all about appreciating dads for their sacrifices and moral teachings. The day honours dads' contributions to people, families, and communities. Let's make the day memorable by discussing some financial principles that all fathers should teach their children in order to safeguard their future wealth.
Save And Invest
It is widely held that starting to save and invest at an early age can help with wealth growth. Thus, fathers can educate their children on the importance of saving for the future and expose them to the notion of interest.
How To Make Their Budget
We all will agree, that budgeting is the primary key whenever we are talking to about saving. Budgeting enables us to analyse our daily expenses and highlight what is unnecessary and what is needed. Budgeting is an important life skill that fathers can teach their children.
Value Money
We are sure all fathers try to teach their kids the value of money. Parents often give their children an allowance on a daily, weekly, or monthly basis, teaching them to save more and spend less.
Financial Responsibility
Fathers should always share responsibilities with their children, or at least discuss them. Fathers should underline the need for fiscal responsibility by emphasising the repercussions of hasty purchases and excessive debt in front of their children. Assist Them In Setting Financial Objectives As a father, sharing your life's path and how you began to save money as a child may greatly benefit your children. Fathers can give their kids short goals to set, like starting to save money for occasions like Father's Day, Mother's Day, Rakshabandhan, their own birthdays, etc.
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Teach the Difference Between Needs And Wants
Fathers can question younger children about goods available in their own house, such as cooking utensils, clothing, and toys, and ask them whether the family needs or wants them. By making that difference clear, kids can actually learn that some purchases are more important than others.
Now these were all the tips for the young fathers of today's age, but what about the fathers who also need assistance in investing with the schemes available in today's time?
Retirement is a painful truth that your father will either face or has already faced. This Father's Day, you can empower him with a little financial knowledge to assist your father in sorting out his retirement funds. You can take the time on Father's Day to secure your father's finances. One can give him a lifetime of security by making the appropriate investments. So let's dive in and see what is available in India:
In India, we have the National Pension Scheme: The National Pension Scheme, which is administered by the Pension Fund Regulatory and Development Authority, or PFRDA, raised the retirement age for the National Pension System (NPS) to 70 years. This is a novel concept in which one may invest for an extended period of time to build up a substantial corpus that can subsequently be turned into an annuity income. You may set up an NPS account in your father's name and make contributions on his behalf.
Senior Citizens Savings Plan: If your father is a senior citizen, establishing a Senior Citizen Savings Scheme, or SCSS, would provide him with not only the necessary security but also tax advantages.
PPF: Examine to see if your father has a Public Provident Fund, or PPF, account in his name. Because of its long-term nature, this government-sponsored plan is a popular investment choice. The fund enables individuals to save for their future financial goals in a secure and effective manner while reaping tax benefits.
There are many other schemes and ways, like the mutual fund programme for retirement, the Senior Citizens Savings Plan, retirement plans for life insurance, investing in stocks, crypto, etc., that you can analyse and then decide what is best for you and your parents.
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