Passing on Financial Lessons to My Kids: Here’s What My Father Taught Me!

There is no one-size-fits-all ‘Dad’s Handbook.’ Parents, especially fathers, raise each one of their children in a totally different way. Ask anybody what their dad taught them, and the responses will differ widely, from nothing at all to all brilliant chunks of intelligence.

I feel fortunate and blessed to have a father who not only taught me to differentiate right from wrong but also a few important financial lessons. With Father’s Day coming up soon, I feel extremely humbled and emotional to share a few financial lessons my dad taught me, which I plan to pass on to my two kids too.

Here are the top four financial lessons I learned from him:

He Taught Me How To Budget

One of my very first lessons my father taught me growing up was the concept of budgeting. My father was all about having a budget. He went over his budget every month, spent less than what he earned, and dependably had an emergency fund.

He did anything and everything to ensure that we didn’t need to stress over money or go without whatever I required when I was a kid. It’s a trait of his that I have always adored.

I plan on doing the same for my kids. My first step would be helping them create a workable budget. This will not only prioritize savings but also develop self-control. Then I would encourage them to save regularly by establishing a timeline to reach their specific goals. As they begin to encounter the advantages of budgeting and savings, they will begin saving money on their own.

He Taught Me To Have Goals And Vision

The topic of vision and goals came up a lot when I was younger. I remember one day watching television with my dad and seeing a construction commercial. I was super young and said, “Dad, I will build a big skyscraper just like this one when I grow up!”

To which my dad replied, “If you have this goal and work towards fulfilling it, you would definitely build the tallest skyscraper in the city. But promise me that you will allow me to cut the ribbon at the grand opening of your building”. We both shared hearty laughter after that.

Being an engineer, I did build a building, althought not the tallest in the city. But I am glad that my dad was the one to cut the ribbon.

The point is, even though I was young, my dad explained the importance of having goals and making a plan to achieve them. He further added that although your objectives may probably change, learn to implement both short and long-term goals. This will allow you to enjoy the fruits of good planning.

Thanks dad for another great financial advice!

He Taught Me About Investing

I am glad that my dad used the following ways to teach me about investing:

• When we went to our native place, he asked me to plant a seed and watch it grow over the years. Now, that’s a big mango tree, bearing ample mangoes which even my kids enjoy every summer.
• He bought me board games to teach about money and how investing works
• When I was a teenager, he taught me how compound interest works and showed me how his small investments over the years have now yielded profit

Taking his advice, in my 20’s, I started investing money in prudent investment plans. Today, when I have different life goals – giving the best education to my kids, their marriage, my retirement and a lot more – my goal-based investment plans are there to ensure that right amount of funds will be available at the right time.

Just like me, if you have different life goals, there are reputable insurers like Max Life Insurance who offer many benefits with their tax saving investment plans, including:

• Wealth plans with inbuilt life cover
• Flexibility to increase the cover
• Flexibility to choose your funds basis your risk profile
• Flexibility to switch your money as many times you want

So, while I keep on investing in such plans, I plan to introduce my kids to basic but important concepts such as interest rates, compounding, and inflation. Parents can start with looking at the best interest rates for childrens isa and discussing it with their children.

He Warned Me About Debt

As far as I know, my father never had debt, or if he did, it was paid off quickly. He never shopped on credit cards that he couldn’t pay off at the end of the month. Instead, he believed that being a good investor and saver is essential and so is experiencing life.

I’m so grateful that he taught these biggest financial lessons that I can pass on to my kids. Thanks dad for instilling these financial values at a young age – lessons that will continue to shape our future!

Readers, if you are thinking that I am paying homage to my dad who passed away years ago by writing this article, you are mistaken. He is sitting right beside me, constantly nagging me to write good things about him. That’s my dad for you!