Financial Journey of a Father
This Sunday, June 20, 2021 marks the Celebration of International Father’s Day. A father is a symbol of Strength, Security, Love, Care, Financial Independence for a child. A mother and father together are a world to the children. There are many ups and downs that a father goes through his life. Such ups and downs are the basis of learning for a child. Today, we pick some of the financial learnings from a Father’s Life.
Stages of a Father’s Life:
- Birth of a child – The Planning : The birth of a child, is when a married couple becomes parents. For a father, the birth of a child becomes the Planning phase. Planning Phase means a Father plans on the expenses to be incurred on the initial nurturing of the child. The initial expenses of necessities of the new-born, the way forward, etc. taking of the mother of the child as well in the initial period of the birth of the child along with the ongoing expenses of needs and priorities of the family. Together with this, a father starts investing for a bright future of the child.
- Upbringing of the child – The Near Term Goals : The Next phase is of satisfying the nurturing and upbringing of the new-born. A father after the birth of the child, ensures that his child gets the best of everything. Be it – Clothes, toys, food, amenities, love, care, pampering everything. This is where the expenses either shoot up or they need to be kept in budget. A father – be middle class, lower-income class or high net-worth class, a father makes necessary adjustments or incurs expenses to give the best of the best to his child and satisfy his near term goals without compromising on the quality.
- Basic Education of the Child – The Short Term Goals : Further, comes Education. To satisfy the Education needs of the child, the father redeems the investments, he made at the time of the child’s birth years ago. The major factor here is the investments may or may not suffice depending upon whether inflation as a critical factor is considered or not. Here if the inflation impact is not considered, lots of adjustments are made. However, a father takes care of the fact that the child does not get negatively affected by any such adjustments.
- Higher/College Education – The Medium Term Goals : Next comes the College Education or say the Higher Education Needs of the child. This is the phase when the child has grown up to teen age and have many dreams and aspirations with regards to his career and life. This is a stage when the child chooses the area of interest for his professional career which a father needs to fulfil. The child may also wish to go overseas for further studies or get admission into a reputed institute of the nation for which the expense may be too high. A father still manages everything so efficiently.
- Career Building of the Child – The Long Term Goals : Next is the Career Building of the child. After completing education, a child may do a job or become an entrepreneur. A father needs to support the child financially in the early stages in both the cases.
- The Zero Salary Age & Child’s Wedding – The Long Term Goals : The Child may be a Boy or a Girl, needs to get married. Wedding Expenses may be higher than expected depending on how the entire event gets organized. This is one event where the child supports the father financially. The wedding of the child also nears the Zero Salary or the retirement age of the father. Now he also needs to take care of himself as the age is declining, draft a will, meet the medical expenses if required. A father successfully maintains balance everywhere
- Wealth Creation for Generations : The Last Phase is passing the wealth a father has accumulated to generations after him. Executing proper will, in case he needs any health treatments or in case anything happens to him. He may pass his wealth to his spouse – the mother or the children or anyone he wishes to.
This is how a Father passes through various stages in Financial Life and he always rises up the level from Zero to Hero. Mentioned above is how a “Father becomes the child’s first hero”
In the entire post across stages, one thing that is unique and important is “Investments” and a father’s “Investwise” decisions for his child.
Stock Book Wishes everyone a very happy Fathers Day and may we all learn to #Investwise from our Financial Pillar, our Father.