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Succession Planning

What Is The Need To Involve Your Family In Financial Matters?

It is important to involve your family in financial matters like succession planning and discuss with them in-depth because it is a very crucial aspect in their life.

 

The following points will help you recognise the importance of discussing your financial affairs with family: -

 

Involving your spouse:

  1. In our country, most financial decisions are taken by the head of the family. In this process, the views of the spouse (usually the wife) are generally not taken into account.
  2. Although it may sound irrelevant to you, it is important to include your better half while creating or reviewing your financial plans. 

Her opinions about various subjects can bring a great deal of clarity and another perception to you while thinking about the long-term financial needs of your family.

 

Creating awareness among children:

You would agree that children learn a great deal by observing. Many of you would see that today’s generation are very smart and are fast learners. They have the acumen and inquisitiveness to learn.Therefore, discussing with them will create curiosity in their mind and help them understand      financial matters better. Schools and Colleges today are educating children on personal finance.

However, as a parent it is vital that you too involve children while making financial decisions for the family, especially the ones that will affect them, and inculcate in them the value of money.

 

Financial independence:

Involving your family in financial matters can help them become financially independent and confident in the long run. It will help   them   to   appreciate   the   importance of budgeting, financial planning and succession planning.

Remember that while you involve your family, pass on all vital information to your family members. Also, be open and honest regarding the financial history of the family. Let your experiences, whether favourable or unfavourable be a teaching lesson for them. This will avoid the confusion and tension that may occur in the future

 

You must understand that discussing money matters with family is not a taboo. Thus, start sharing all financial issues with your family before it's too late.

 

If you are not confident, take help of an expert who can guide you and your family.

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Units 2/25