In our metro-like lifestyle, people hardly have time to sit and have a good time conversation with their family members. No matter you are a male or female, we only get time to share things be it thoughts or any decisions with our family on the dining table only.
Well, conversation with family members is necessary and from the financial point of view, money conversations with your family members are a must!!
Through all the events that we come across, during International Women’s Day, we can easily conclude that a women’s participation in her family finances starts when she actively participates and evolve herself in the money conversations at home.
Money conversations with family members not only let the women become active members of the household money management team, but it also helps men to share the burden of financial decision-making and the younger family members who become a lot more money aware early in life.
Now to make the money conversation with your family more beneficial the points to be discussed must be organic from the financial point of view. Here are some points that can help you begin beneficial money conversations with your family members.
Are We Saving Enough?
Almost every financial planning, be it buying something or be it investing somewhere, all start with saving. Then what is saving exactly!
When you earn and you spend, in the meanwhile or at last what money you do not spend is saved and that is your saving. In a family, if both the partners are working then savings from both incomes have to be considered.
Now, is saving much important? Yes, saving money is important and this lesson is well taught to us by this COVID-19 Pandemic and the lockdown imposed in India last year! Saving money is important for two prominent reasons, to cater to any uncertain life circumstances and for future financial needs.
Now it is advised when you sit for money conversations with your family, put your organic points and make them understand how important it is to inculcate a habit of saving regularly. In fact, you must let your children learn the art of saving regularly.
Now after this, the next step is to watch how much altogether you can save every month. Put all the money saved by your family members together in a separate bank account, it will help you monitor your savings and spends separately and easily. Each family member can be enabled to check the accumulation in this account on a monthly basis; it helps to note the change in micro time periods at the start to understand the benefit.
Make Ways To Grow Your Savings!
After saving money lessons, comes the lesson of investing. Yes, only saving money cannot help you achieve all your financial goals over time, thank rising inflation, it makes money lose its value over time if stored idol at a place.
Well, investment is the only option that saves money from inflation and helps retain its value, in fact, investment helps money grow over time. A broad discussion around the investment options used and available can make for a comfortable dinner conversation once a month.
Discussing investment is not based on which product or asset you have chosen to invest, but what portion of your saving you have tied up towards long-term goals and how much is there for needs that may be around the corner, is much more important to be discussed with the family.
This can be your money conversation for the first dinner night, on the coming nights you can discuss the different health insurance and life insurance plans. Basically, the motive is to make your family members aware of ways through which they can ensure protection to the family, both financially and physically.
Money conversations or discussions with family help strengthen family finances, not only this but having good knowledge about finances at right help your children take accurate positive financial decisions in their life. Spending on needs and saving for the future will help your children lead a life full of enjoyable moments and less financial burden!!
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(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).