Whether you are the sole breadwinner of your family or not, there are a few things you need to plan for the financial well-being of the ones who are dependent on you. This planning, therefore, needs to be very strategic, keeping in mind the goals of your family, number of dependent members, total earnings, and a lot of maths.

First thing to keep in mind is to plan your parents finances separately as they have different goals than you which need to be me. The key is to ensure your parents are financially self-sufficient so they can manage their finances even if you are not around to assist them. Here are a few tips:

A) Savings

A lot of parents start saving money from the moment their kids are born – college fees, wedding plans, vacation, the list goes on but, what they never do is – save money for their future selves. It is really important that parents realise how important it is to have savings for their retirement so they can live carefree without depending on anyone. Help them choose the best investment option that suits their needs and focuses more on their long-term objectives..

B) Insurance

In case your parents are financially dependent on you or not, insurance is always a good investment. Needs. When buying insurance, keep the family’s circumstances and your parent’s best interest in mind. For example, term policies tend to offer coverage for a minimum amount but what you need to know is the coverage term expires after a certain year. If you are certain the risk goes away after that particular period, it may be fine but in case the risks are uncertain, you might want to go for a whole life policy.

C) Pension

Pensions are a constant source of income for your parents after a particular age so they can be financially independent without working. If your parents or one of them is earning a pension, help them plan how to invest and where to invest so it’s not lying in the corner catching all the dust. For example, this income could go into their insurance payment. There are a lot of avenues, you only need to find the right one.

Never stop educating your parents about what’s happening in the finance and economic sector. The more they learn, the more they get better at it. Make them understand what is an asset and what is a liability. Store your documents in one place and make sure they have a clear access to all the hard and digital copies and accounts, this would make their work easy when you are not around.

Your parents spent their savings on you so you have to make sure their future is financially stable and sound. Above all, don’t forget you are their biggest asset. Help them make their future financially fool-proof like they worked to make sure you did.