“As a father, I hope to teach my son the importance of money and how to manage it wisely,” says Viral Bhatt, Founder, Money Mantra.
In an interview with MintGenie, Bhatt said that the definition of money is still evolving and is subject to change as new technologies continue to emerge.
Edited Excerpts:
Q. How do you correlate a father’s responsibility with his wards’ financial independence?
A father's responsibility can be correlated with his wards’ financial independence in a number of ways. For example, fathers who are financially stable and provide for their children's needs are more likely to raise children who are financially secure themselves. Fathers who are involved in their children’s lives and teach them financial skills are also more likely to raise children who are financially independent. Additionally, fathers who set a good example by being financially responsible themselves are more likely to inspire their children to develop financial responsibility.
Q. Fatherhood entails financial responsibility. How do you think a father should plan finances to secure his children’s finances in the long run?
There are many ways that a father can plan finances to secure his children's finances in the long run. To secure your children's finances in the long run, consider the following tips:
- Start saving early. The earlier you start saving, the more time your money has to grow. Even if you can only save a small amount each month, it will add up over time.
- Set financial goals. What do you want to achieve financially for your children? Do you want to save for their education, their first home, or their retirement? Once you know what you want to achieve, you can start to create a plan to reach your goals.
- Invest your money wisely. There are many different investment options available, so it's important to do your research and choose investments that are right for you and your children's needs.
- Live within your means. This is one of the most important financial tips for fathers. If you spend more than you earn, you'll never be able to save or invest in your children's future.
- Be a role model. The best way to teach your children about financial responsibility is to be a role model yourself. Make sure you are making wise financial choices and that you are living within your means.
By following these tips, you can help to secure your children's financial future.
Here are some additional tips for fathers who want to help their children achieve financial independence:
- Teach them about money management. Help your children understand the importance of budgeting, saving, and investing.
- Talk to them about debt. Help them understand the dangers of debt and how to avoid it.
- Encourage them to get good education. Good education is one of the best ways to secure a financially secure future.
- Help them find a good job. Once they are out of school, help them find a job that pays well and has good benefits.
- Be there for them. Financial independence is important, but it's not the only thing that matters. Be there for your children emotionally and financially. They will appreciate your support.
Q. You are a father to your son as much as you are a son to your father. How do you think the definition of money has changed over the period?
The definition of money has changed over time in a number of ways. Originally, money was simply a medium of exchange, a way to trade goods and services. However, over time, money has come to represent more than just a means of exchange. It has become a store of value, a unit of account, and a standard of deferred payment.
The definition of money is still evolving. The definition of money is subject to change as new technologies continue to emerge. For example, the development of digital currency or cryptocurrencies, such as e-rupee or Bitcoin, has raised the possibility of a future in which money may or may not be controlled by governments or central banks.
As a father, I hope to teach my son the importance of money and how to manage it wisely. I want him to understand that money is a tool that can be used to achieve his goals, but it is not the most important thing in life.
Q. Many people negate the importance of health insurance. From being the father of a toddler to being the father of a college-going ward, what changes do you advise in the structure and coverage of the health insurance plan bought?
Health insurance is important for everyone, but it is especially important for children and young adults. This is because children and young adults are more susceptible to illness or injury and may lack the financial means to cover medical expenses.
As a father of a toddler, you should consider a health insurance plan that covers preventive care, such as well-child visits and vaccinations. You should also consider a plan that has a low deductible and copays so that you do not have to pay a lot of money out of pocket for medical care.
As your child transitions into college life, you may need to change your health insurance plan. This is because college students are more likely to participate in risky activities, such as drinking and smoking, which can lead to health problems. You should also consider a plan that covers mental health services, as college students are more likely to experience mental health problems than younger children.
Q. Life insurance is the first line of defence sought to secure the financial future of a kid. How do you advise fathers to decide on the coverage amount while buying life insurance?
When determining the coverage amount, consider the following factors:
- Your income: The amount of life insurance you need will depend on your income. If you are the primary breadwinner, your family will need enough money to cover their expenses until they can become self-sufficient.
- Your debts: If you have any debts, such as a mortgage or car loan, you will need to factor those into the amount of life insurance you need. The death benefit from your policy can be used to pay off these debts, which will free up your family's income to cover other expenses.
- Your child's expenses: Consider your child's current and future expenses, such as college tuition, housing, and healthcare. The death benefit from your policy can be used to help your child pay for these expenses.
- Your family's goals: What are your family's goals for your child? Do you want to help them buy a home, start a business, or travel the world? The death benefit from your policy can be used to help your child achieve these goals.
