Today, we celebrate fathers and father figures who have played a significant role in our lives. It’s also an excellent opportunity to reflect on our financial goals and take steps toward securing a better financial future for our families. I am sharing some valuable financial lessons that fathers can apply to their families.
Reflect and identify your long-term financial plans. Establish clear financial goals for yourself and your family, and take action to achieve them. Consider what you want to achieve financially in the long term, and identify the steps you need to take to get there in 5, 10, or more years. What are your monetary requirements to achieve these financial targets and what actions do you need to take?
Insurance is important. Many people do not pay attention to insurance and often consider it an unnecessary expense. However, it is important to have protection against risks. Fathers should pay attention to protecting their family’s financial well-being by investing in appropriate insurance coverage. This is important for fathers with young families and children in school. Speak with an insurance broker and set up a scheme to protect your children’s education and hedge against unexpected loss of income, or life. Whether it is life insurance, health insurance, or disability insurance, having the right protection ensures that unforeseen circumstances do not result in financial hardship for your family.
Have the money talk. Every father should encourage open discussions about family finances. A man who discusses money with his family (wife and children) is a wise man. When you have open conversations about money, your family is aware of what you own and what you owe. This helps the family keep expenses within the agreed ‘budget’ giving room for savings and investments and ultimately helps everyone to work together towards the family’s financial goals.
Fathers should lead by example. A father has a great influence on his family and should demonstrate responsible money management. Children observe and see things. Exhibit good financial habits such as paying your bills on time, avoiding unnecessary debt, and making wise investment choices. Keep your financial commitments and avoid living above your income.
Fathers should encourage financial literacy. As a father, you play a crucial role in determining the direction of your family’s financial destiny. Irrespective of your family’s financial history, financial education is important. If your background is wealthy, then you need to educate your children for this wealth to be grown and preserved. On the contrary, if your background is poor, you owe it to the children to teach them the money skills necessary to turn things around. Introduce your children to sources of financial literacy. There are many opportunities for this, you just need to be deliberate and intentional in educating your children about basic financial concepts, such as budgeting, saving, investing, and understanding credit.
Retirement planning. Plan for your retirement and consider how you want to live after you retire. Do you want to be financially independent, or do you want to rely on your family for support?
Take steps to protect your family. Estate planning and writing a will are crucial elements of financial fitness for fathers. By taking these steps, you prioritize the well-being of your family, ensure the distribution of assets according to your wishes, minimize tax implications, and provide clear instructions on your business interests. Contrary to what many people believe, writing a will does not attract death. Instead, it is an action necessary to protect those you love. By doing so, you provide your loved ones with the security and clarity they deserve, even after you are gone. Remember to seek guidance from legal and financial professionals to help you navigate the estate planning process.
By implementing these 7 financial lessons, fathers can secure a better financial future for their families. If you need support in meeting your financial goals, connect with FCBK via email at financecoachtoday@gmail.com.
