Father’s Day for the financially savvy

Yes, Father’s Day happens every year. But the setting has changed in the last two years, since mindsets have changed. Experience has caused a shift in values.

We know what is more important than fancy gifts, and time spent together is only one of those.

We have realised the value of health covers, vaccinations and financial security.

IF YOU ARE A SON OR DAUGHTER

Take time to have a long chat with your father, and discuss revised priorities.

If there is an adequate level of trust between you, check on the following parameters.

1. Do they have adequate health insurance?
2. Do they have an emergency fund?
3. Is their retirement planning on track?
4. If your parents are retired, has their monthly income taken a hit due to loss of rental income or low rates of interest?
5. Do they need reallocation of resources to improve the state of financial affairs.
6. If they are not aware of all investment and earning options, you may consider gifting them a financial advisor’s services. An updated health insurance policy or a bank deposit to contribute to their emergency fund can be a good gift idea.
7. If they are managing without domestic help, and need new household gadgets, consider gifting a dish-washer or vacuum cleaner. It could also be a device to check blood pressure or sugar levels, if they cannot go for frequent health checks. A jogger or new hand-held device may also help them meet the needs of changed times.
8. If you find yourself in a spot, and your parents are financially well-off, you may explore options of a friendly loan from them.
9. If you think they are in a spot, but have reserved funds for your higher education or leaving an inheritance, convince them that you’ll be fine. They need to build a safety net first. Parents do not believe in depending on the children any more, so there is no point in saying “I’ll take care of you later.”  You are not aware how life can change for both of you. Their financial security is sacrosanct, irrespective of all the love and affection and trust between you.

Related post : 7 Common Mistakes in Retirement Planning

IF YOU ARE A FATHER

Well, it’s your day for bond building. Your children are likely to spend time with you, so make good use of the opportunity.

I heard a nine year old girl rattle off details of universities her parents could afford in later years. She mentioned with a worldly-wise demeanour that a scholarship or education loan will be needed if the cost of education shoots up. It is a fine example of goal-setting, and letting the kids know boundary lines.

IMPORTANCE OF FINANCIAL PLANNING

1. Talk to them about the importance of financial planning.
2. If they are financially dependent on you, explain the money situation to them, to the extent that you feel comfortable. Let them know the boundaries within which they need to function.

IMPORTANCE OF SELF-RELIANCE

1. If they are college-going students and possess a talent or skill which can be encashed, encourage them to explore opportunities. They can take up internships, summer jobs or moonlight during their spare time. It will teach them how to stand on their own two feet. 
2. If they are not in a position, where work will be offered to them, teach them how to build online visibility. They are net-savvy for sure, but may not be hitting the right platforms. We have seen brilliant kid speakers on TedX talks. Give them ideas, and they should be able to carry it further. 
3. If you are doing webinars or Lives on Facebook, Instagram or Youtube, introduce your children on the platform. They will learn a lot from the experience.
4. Teach them all about online money safety, so that they don’t fall prey to frauds.
5. Explore the use of money apps together, where it is possible to track spending, split bills between friends. 
6. Encourage them to take up online courses for up-skilling, instead of binge-ing on Netflix or other OTT platforms.

Related post: 3 Reasons why millenials should start saving early

Financial Planning in Corona Times

FOR BOTH FATHERS AND ADULT CHILDREN

It may be the right time to broach the subject of estate planning.

A participant in a webinar on Estate Planning said that any mention of the subject of writing a will, instantly draws up walls between the family members. My answer was “Talk about it so often, that the subject feels normal.

The children should know what they are likely to inherit, and what should they do to be self-reliant in their life.

Adult sons and daughters can talk about their plans for their children, and see if there is common ground somewhere to resolve problems.

WHAT SHOULD YOUR FAMILY KNOW , IN CASE YOU ARE HOSPITALISED, OR HAVE MOVED ON?

The topic will be dealt with in detail, in subsequent blogs.

However, give a serious thought to the subject. Create files with net banking passwords, insurance policy details and other critical information. Share it with at least one member in the family. 

If the trusted person is your wife, let her know what can be safely revealed to the children in an emergency situation. 

Download formats to record financial information from this free course

And what if Father’s Day is behind us as you read this :). There is always a Father’s week and Father’s month. It is never too late for doing something with the right intent.