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The perfect finance gift you can give your mother

Apart from planning on what to do with her money in future, your mother should also be aware of basic financial information.

business Updated: May 07, 2019 12:29 IST
Revati Krishna
Revati Krishna
Hindustan Times, Mumbai
money,business,equity
A small systematic investment plan (SIP) will relieve you from the burden of gifting anything that requires a lump sum payment.(HT Photo)

One day at a luxurious spa or an expensive dinner? More often than not, such things make it to our list of ideas when Mother’s Day is round the corner. This year, try out some personal finance gifts for your mother:

AN SIP TO CALL IT HER OWN

Mothers who are homemakers mostly divert their funds into household budgeting or gold. Hence if you are earning, gifting your mother a financial product will give her a sense of financial independence. “At times mothers may not want to take cash from you. A small systematic investment plan (SIP) will relieve you from the burden of gifting anything that requires a lump sum payment. It can be an investment that she calls it her own,” said Nisreen Mamaji, chief executive officer, MoneyWorks Financial Advisors. Your mother can use the maturity value when she needs it.

GIFT A FINANCIAL PLANNING SESSION

“One of the best gifts that you can give to your mother this Mother’s Day is a financial counselling course with a certified financial planner,” said Mamaji. Most parents advocate traditional investment product. “It will open her up to a world of investments where she can begin with investments spread out across risk profiles. Gradually, keeping her risk appetite in mind, she can move to equity-oriented instruments,” Mamaji added. For instance, she is likely to live a long life and hence consider equity. “For 6-7 years after retirement she can look at SIPs and gradually move to equity funds,” said Deepali Sen, founder of Srujan Financial Advisors.

CREATE A BASIC CHECKLIST

Apart from planning on what to do with her money in future, your mother should also be aware of basic financial information. “You could help her create a basic checklist of all the bank accounts and passwords, insurance policies with maturity dates and nominee information,” said Deepali Sen, founder of Srujan Financial Advisors. “Like any other individual she should keep four to five months of expenses in an emergency fund,” Sen added. Another important thing to add to that checklist is the will, she added.

DIY FINANCE

Enabling your mother to navigate the financial world by herself will go a long way too. “In some cases when women have been completely dependent on their husbands for management of finances, a sudden demise can leave them helpless especially when they are bit older. These include small things like assisting her with usage of ATMs, equipping her with bank transactions and likewise,” said Mamaji. Even if your father has been taking all the major financial decisions, “it is important that your mother is aware and is party to all the decisions if not the decision-maker itself,” said Sen.

READ UP ON NEW LAWS

There may be newer regulations making finances easy for senior citizens but your banker may be hesitant to brief you about them. “A clear example of this is RBI’s regulation on doorstep banking for senior citizens. Your banker may not inform you and your parents may have to take a lot of effort for frequent visits (to the bank),” said Mamaji. A little effort from your side for being abreast on regulations can do wonders for your mother.

First Published: May 07, 2019 12:29 IST