Festivals such as Raksha Bandhan are about celebrating the bond between siblings. But they can also be a good opportunity to build better financial habits together. Instead of making the occasion only about short-term spending, siblings can use it to encourage each other to save, invest, and become more financially independent. Paresh N Bhagat, MD and chairperson of Mangal Keshav Financial Services, shared financial lessons siblings should pass on to each other.
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1. Gift assets, not expensive hampers
Paresh highlighted that festival gifting does not always have to mean clothes, gadgets or elaborate hampers that lose their value quickly. A more meaningful approach can be to give something that has the potential to build wealth over time. “Depending on the amount, siblings could consider gold or silver, a fixed deposit or a mutual fund investment. The point is not that every gift needs to generate a return. It is about using occasions like Raksha Bandhan to introduce better saving and investing habits within the family,” said Paresh. A ₹5,000 gift that is invested could ultimately be far more valuable than a ₹5,000 hamper that gets consumed within a few days.
2. Spend only what you have
According to Paresh, one of the simplest financial lessons siblings can reinforce in each other is this: do not borrow to maintain a lifestyle. If something cannot comfortably be paid for from your existing income or savings, it may be better to wait. Borrowing for discretionary spending can create a cycle where future income is already committed to yesterday's purchases. Financial independence starts with keeping your spending within your means.
3. Do not become dependent on credit cards
{{/usCountry}}According to Paresh, one of the simplest financial lessons siblings can reinforce in each other is this: do not borrow to maintain a lifestyle. If something cannot comfortably be paid for from your existing income or savings, it may be better to wait. Borrowing for discretionary spending can create a cycle where future income is already committed to yesterday's purchases. Financial independence starts with keeping your spending within your means.
3. Do not become dependent on credit cards
{{/usCountry}}“Credit cards make spending feel easier because the money does not immediately leave your bank account. But that convenience can also make it easier to spend more than you intended,” highlighted Paresh. A good habit is to avoid relying on credit for regular expenses and spend money that you can actually afford. High-cost revolving credit-card debt, in particular, should be avoided. Siblings can help keep each other accountable by asking whether a purchase is genuinely affordable, rather than simply whether there is enough credit available to make it.
4. Build your own emergency fund
A strong sibling relationship means having someone to turn to when things go wrong. But your brother or sister should not automatically become your emergency fund. Each person should work towards building enough savings to cover a few months of essential expenses. This can provide a financial cushion during a job loss, medical emergency or unexpected expense. The goal should be to support each other when needed while also helping each other become financially self-reliant.
5. Start investing early and consistently
Siblings are often at different stages of their financial lives, which makes these conversations even more valuable. An older sibling can introduce a younger one to the importance of saving and compounding. At the same time, younger siblings may bring greater awareness of newer financial products and investment options. Whether the investment is an FD, mutual fund, gold or another suitable asset, the underlying lesson remains the same: start early, invest regularly and give your money enough time to compound.
Note for the readers: This article is for informational purposes only and should not be considered a substitute for professional advice. Please consult a qualified expert for personalised guidance.