FINANCE SPECIAL ...INVESTING HAS NO AGE LIMIT, BUT IT'S FRUITFUL IF ONE STARTS EARLY

INVESTING HAS NO AGE LIMIT, BUT IT'S FRUITFUL IF ONE STARTS EARLY

It is important to teach children(! Of all ages) about saving and investing to make them self-sufficient and financially literate

Financial planning and investing is not-so-much-discussed topic at home with children. However, I believe that it should be to make children selfsufficient and to make them understand the importance of saving and investing money at young age.

Investing money has no age limit. However, it's always better and fruitful if one starts at young age. Considering this, besides the other life lessons that parents give, it is also important to teach children about the importance of saving. For a child's future plan, we need money on regular intervals and one can classify those needs as short, medium and long term. And although most parents invest money on their kids' name in various mutual funds, fixed deposits, insurance policies, and more, another practice that parents should do is to encourage children, when they are in teens, to invest money to achieve their desired goals. If you are wondering how? The answer to this is by investing the gift envelopes that they receive on birthdays, Diwali, and other special occasions. Invest small amounts through SIP, and allow them to handle and watch their money grow. It is a fun and interactive way to educate children about managing their money.

M B Srinivasa Murthy— The author is an independent financial advisor from Bengaluru

BUILD MULTIPLE FUNDS AS SOON AS YOU START EARNING

In today's uncertain times, it is imperative for young workers to build an impressive corpus to safeguard their future

Vipul Gupta

Everyone has a certain set of fixed expenses each month. And hence, we advise youngsters to start building multiple funds soon as they start earning. They could start with a small amount, and eventually increase their investment. SIP is the most ideal way to build a fund that will take care of their short-term and long-term goals. Besides investing to fulfil their future goals, one should also consider building an emergency fund. Building an emergency fund saves you from withdrawing from your regular savings, thereby securing your future.

However, this financial knowlege should be given to youngsters when they are in their teens. The best way to teach them is by investing the money that they receive as gift envelops on special occasions.

—The author is an independent financial advisor

ETP19NOV18