Dear New Age Fathers, Be the Best role model for your children in ‘Personal Finance’..

Happy Fathers Day!

Being a father is a great responsibility! As a dutiful father, you teach your kids how to behave properly and be a good human being. You are their Hero and they follow you always! So, for ‘Money matters’ and ‘personal finance and investments’, set good examples too to follow!

1. Inculcate saving habits: Fathers are generally decision makers for finances in a family. When you give pocket money to your children, gift them a ‘Piggy Bank’ as well.Ask them to save every month in that piggy and set the targeted amount for them to save. If they save that much, give them rewards every six months like an Ice-cream party at home! Remember, not to set too high amount to save which will make them miser in future!! This activity should teach them a balance in spending and saving! Also, small amount of SIPs can be started from such small monthly savings, so they will automatically learn about investment in their growing up years.
2. Control Your spending habits: Always remember, kids are great observers. They see you spend and handle money transaction when you go to a shop with them. If you overspend on glitters than your needs and that too using credit cards, they try to follow you when they start earning and handling their own money.So, dont overspend.
3. Discuss personal finance at home: When children start growing up, start discussing terms like budget, taxes, investments, rate of return,etc in your family. When they listen to such basic discussions, they become curious to know more about it in growing years.
4. Take your children to financial institutions: Today, though every transaction can happen online, still take your children to your bank, share brokers office, insurance company office etc. when they visit these institutions , they get to know the set up and in future they can give ‘a face’ to transactions which they do when they start handling their own money.
5. Make a financial plan for your children: Set goals for your children and make a plan for them to achieve. Take the services of a professional certified financial planner for your ease. Make plan for your children higher education, marriage, etc. When they grow up and start earning, they will get to know, how your plan worked for their own good. This will encourage them for setting goals and long term investments as well.

“Not all of us can do great things, but we can do small things with great Love”- Mother Teresa.