Nifty Works Financial Services

If you want kids to learn about saving, you have to nurture an ongoing discussion about it instead of avoiding those.

The lesson you want to teach is that saving may mean delaying gratification longer, but the item you want to buy will end up costing less if you wait, by not opting for loan ,unnecessarily.

It’s tempting to step in and steer kids away from a potentially costly mistake, but it may be better to use that mistake as a teachable moment. That way, they’ll know in the future what not to do with their cash.

For example, you could offer a reward when your kid reaches a savings milestone.

Part of being a better saver means knowing where your money is going.
If your children get an allowance, having them write down their purchases each day and add them up at the end of the week can be an eye-opening experience. Encourage them to think about how they’re spending and how much faster they could reach their savings goal if they were to change their spending patterns.

When your children have a savings goal in mind, they’ll need a place to stash their cash. For younger kids, this may be a piggy bank, but if they’re a little older, you may want to set up their own savings account at a bank

Give them right motivation and aim to save so that they know why.

If you want your children to become savers, allowing them to earn and save money provides them with the opportunity to learn how to use it. When you offer allowances in exchange for chores, they’re also learning the value of their hard work.

The first step in teaching kids the value of saving is to help them distinguish between wants and needs.

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Stay in tune for Tips to teach your children to save money.

It is essential to assess your life insurance needs from time to time as your financial goals might change with age and life events like marriage or childbirth. You can review your life insurance needs periodically and adjust your cover accordingly. This will also take care of inflation.

Critical Illness rider provides full claim payout if you are diagnosed with any serious medical condition like kidney malfunction, cancer, or cardiac diseases.
Accidental Death Benefit rider provides your loved ones an additional amount in case of your sudden demise due to an accident.
Permanent Disability rider functions as a waiver for all your future premiums if you are permanently disabled due to an accident.
Terminal Illness rider gives you access to funds for dealing with terminal ailments like cancer by providing full payout before death.

Life insurance premiums are lower when you are younger. Thus, you can save on the cost of your premium if you buy your life insurance policy as soon as you start earning. You can begin with lower coverage and add more riders as your income increases.

Understand all the terms and conditions clearly, before you make the final commitment. Find out relevant details such as the lock-in period and the circumstances in which the claim will not be valid.

If you consume to***co or alcohol, or work in a hazardous industry, inform your life insurer about these details. You must also declare any existing illnesses or family history of critical ailments. These factors influence your risk profile. Providing accurate information is vital to prevent claim rejection in the future.

Life insurance companies with a Claim Settlement Ratio (CSR) of over 95% for consecutive years are generally considered reliable. The CSR is the percentage of claims that the company has settled in a financial year compared to the number of claims placed. You can visit the Insurance Regulatory and Development Authority (IRDAI) website to view the updated CSR of different insurance providers in India.

The term of the policy should ideally be the number of years your family will be financially dependent on you. The general thumb rule for deducing the ideal policy term is to subtract your current age from the age at which you expect your income to stop or wish to accomplish a particular life goal.

You can use online premium calculators to ascertain how much premium you have to pay for the required amount of life insurance. Compare different plans to find a policy that offers the highest coverage at rates that fit your budget. You should also assess your premium paying term based on your earnings for the upcoming years.

Your family’s annual expenses multiplied by the number of years for which income replacement might be necessary
The total amount of your outstanding debts and the cost of repaying mortgages, if any
The amount you need to set aside for future expenses like your child’s education, wedding, etc
From the expenses mentioned above, you can deduct the sum of your liquid assets like cash in hand or bank and any other kind of investments to arrive at an adequate life insurance cover.

If safeguarding your family’s financial security is your primary goal, you can buy a Term Insurance plan that offers a high coverage at affordable rates.

If you are looking to save for your child's education or thinking of buying a dream house for yourself, you can consider investing in a Unit linked Insurance Plan.

You can also buy a retirement plan which will ensure regular income for your everyday expenses post-retirement.

Because life is precious.
Stay in tune...

Staying up to date with the trends and terms can help expand your knowledge and avenues.
Despite the availability of many resources, most of the women don't access any financial investment-related website.
Therefore, constantly upgrading your knowledge will help you feel more confident and adapt to the financial world and where you invest your money..

Plan your taxes at the beginning of the year, so you don't end up making unfruitful decisions at the last minute.
Apart from this, you can make use of the various tax deductions available and save your taxes. This will aid in better planning for your financial goals.

Retirement at some point is almost inevitable! Your expenses will continue, but income will stop, so you’ll need a good financial cushion to sustain you through your dream retirement!
So, it is important that you start early, start small and start investing in assets that leverage the power of compounding, like mutual funds.

Always ensure you and your family are protected with adequate insurance. Uncertainties don’t knock at the door, they are sudden and rather disruptive- emotionally and financially!
So, cover yourself and your loved ones with health and life insurance to ensure the financial stability of your family!

An emergency fund can help one stay afloat in a financial crisis such as the recent COVID-19 crisis.This fund should be at least six months of your expenses and be quickly and easily available when required.
The money should be liquid since you’ll need it when an emergency strikes. This fund can be created with a savings account or with liquid and arbitrage funds that target better returns.

Set financial goals from the very beginning. It is very important for these goals to be SMART goals- Specific, Measurable, Achievable, Realistic, and Time-bound.
Keep aside at least 20% of your monthly income to fulfil these goals. Once you have identified the goals with timelines, plan your short-term and long-term investments.

The first step in the journey of becoming financially fit and independent is to understand your financial patterns. This means that not only is it essential to be aware of your earnings but also be aware of your significant expenditure.
Use a journal or an online spreadsheet to write it down and understand your financial behaviour. Make sure you jot down all details as they will further help you make decisions accordingly.