These days, girls are being encouraged to work outside the house and it is important that they understand finances before they step into the professional world. It is an increasingly competitive world out there and it is up to us to teach our daughters how to be financially competent.
As a father, Rajesh had always supported his daughter Reena in all her endeavours and had encouraged her to seek a professional degree that she could utilise to build a life of her own. However, he was worried about whether he had not taught her enough about finances for her to be able to comfortably live on her own. He decided to consult an advisor to learn more.
To survive in this competitive world, our daughters need to be educated and to pick up skills that ensure they can exist independently. We should be able to enhance our daughters’ abilities by sharing the knowledge that we have accumulated with them.
Financial lessons are one very important subject that they must learn about at a young age. Whether it is investment ideas or tips on how to save more, our daughters should benefit from our lessons. Unit Linked Investment Plans (ULIPs) are among such investment ideas that our daughters should know about. The best ULIPs, available on Finserv MARKETS, act as insurance and also help accumulate a corpus over a period of time. You can buy ULIPs online even before your daughter starts working and help her make her first investment.
Read on to learn about 5 financial lessons your daughter should know at an early age.
Money does not grow on trees:
While this may seem like a simple concept, this is often not understood by children. It is important to teach your daughters, right from an early age, that money is a finite resource and needs to be worked for. This is an essential lesson, since this will help your daughter appreciate the value of money and she will think before she raises demands.
Teach them to work for money:
By doing something as simple as tying up their allowance to the chores they complete, you are actually teaching them the value of working for money. By getting her allowance only after she has completed her chores, your daughter will not only know several life lessons but will also appreciate how hard parents work.
Teach your daughter to invest:
While there are several investment options out there, it is best to educate your daughter on the best one. Read up a little yourself first, so you can explain her options to her and answer any questions she comes up with, intelligibly. Teach her about the stock market, about the different kinds of securities, about the risks attached with each and definitely teach her about ULIPs. ULIPs are a great way which ensure forced savings and help grow a substantial corpus while aiding both long-term and short-term goals. The best ULIPs, such as those available on Finserv MARKETS, even allow for partial withdrawals after a period of time. You can buy ULIPs online and enjoy the increased convenience and transparency that comes with investing online.
Teach her the importance of maintaining a good credit score:
A credit score is determined by how promptly repayments are made on loans, credit cards, etc. It is necessary to maintain a good credit score because it determines how easily she can apply for a loan in the future. Having a poor credit score can be detrimental to her future financial health and security, and if she learns the importance of maintaining a good score early on in life; she will face no hurdles later. As parents, it is our responsibility to teach children the wisdom of using credit cards appropriately without running up too much credit on it. It is also essential to teach them the value of prompt payment on credit card bills.
Teach her to budget and save:
As a parent, it should be your firstmost responsibility to teach your daughter how to budget and save. This can start out with simple things. You can teach her that how once you get your salary, you set aside money to pay bills for electricity, the WiFi and even for paying the maid. Then how a certain part of the sum has to be set aside as savings, which will come in handy on a rainy day. You can also teach her to budget for the good things, such as heading out for a meal to a 5-star restaurant or even to the movies.
It is important for daughters to learn how to be financially independent from a young age. Parents are the best role models since children imbibe a lot of wisdom from them. The sooner daughters begin learning financial lessons, the sooner they will be able to start being financially responsible. Investment ideas are an especially valuable lesson for children, and they can begin investing with ULIPs. The best ULIPs, such as those on Finserv MARKETS, can help them save up for goals such as higher education or marriage or buying a house. With the increased convenience available with the option to buy ULIP online, your daughter will never be at a disadvantage financially. She can also avail the various ulip tax benefits.
Once Rajesh had learnt of these financial lessons, he had wasted no time in passing on the lessons to his daughter. Five years later, he was proud to tell neighbours and whoever asked that his daughter was living all by herself in the city of Mumbai and was managing her finances excellently.
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