Financial Lesson I learned from my Father

Papa, Baba or Dad - the most important man in any person’s life. A guide, a coach, a friend or be it a teacher, he is one main reason that today children go to school without worrying about any other problems of books, fees, or stationary; today kids are doing their further studies because he was there to support them; today youngsters are working in big MNCs (Multinational Companies) with an excellent package; all thanks to him for being there when he was needed the most. Father’s Day is celebrated worldwide to give recognition to his contribution to their children in all circumstances and also for guiding them to live their future in a much better way.

They are the ones who have been planning their children’s expenses for education, medicine, clothes, pocket money, holidays, etc. since the time they were born. They are the ones who have been putting continuous efforts in trying to secure their child’s future in one way or the other so that their child may not face the same problem as he must have had in his young age. And that’s how a father plays the important role of a financial planner in his children’s life.

So, on the occasion of Father’s day sharing some of the financial lessons that were taught to me by my own ATM (Father) -

1. He is the one who taught me the importance of money at a young age by giving me little pocket money every month.

2. He is the one who encouraged me to start saving for the future. Every month he use to keep 10% of my pocket money with him and during my B’day or Diwali, I was allowed to use it with free hands. That’s where I learned about goal planning.

3. He is the one from where I learned about diversification. I had a habit of keeping my pocket money in my school bag and once someone stole all of my money. That’s when he advised me to keep a small amount in my school bag (according to my daily expense), a little amount in my piggy bank, and rest somewhere in the almirah.

4. Think before spending and ask before buying – Once asked my father to buy me a good “Cosco” Table Tennis racket. He then asked me to go in the market and do some research about this company and also of some other companies. This actually made me learn about the different qualities and types of rackets available in the market. I remember asking a lot of questions at every shop and then noting them down in my diary.

A few days later he asked my coach to suggest some good options. My coach suggested a racket which was half the price of Cosco. This incident taught me a lesson and since then be it investing or spending, I think a lot about options. Letting the children do the research on a particularly expensive product can enhance their awareness they feel responsible enough for taking a proper decision before buying any laptop, smartphone, or video game. Negative consequences learned first-hand can make the kids learn smarter financial decisions.

One can also teach their child the importance of charity. How much difference can they make just by donating some amount of their savings or earnings to the poor and needy? After all, money is not everything. It is just a tool to help one fulfill the necessities. Therefore, why not help those people who cannot even earn due to some or other disability.

Let me take this opportunity to thank him for teaching me these basic finance principles, knowingly or unknowingly and many other things in life due to which I am earning enough to take care of myself and my family's basic necessities today.

On this occasion let’s thank every father who is ready to face any challenge to make their children financially independent.

Happy Father’s Day.