Monday, 13 December 2010

Why do we inform our financial condition to our family?

Yes most of our intention is to promote our family. In other words we are living for our families. There may be so many other aims and goals. But the ultimate aim of a married person and having children is that to live for their family. It is their duty to support their family by all means. But, should we disclose our financial condition and investments to our family. Most investors are not doing so. Most of our families do not know all our financial conditions. Is it a good thing? No.

Once I asked a boy about his father and what is he doing. But the boy who is studying in 8th standard was not aware about the job and the working place of his father. In their family they never discuss such matters in front of their kids. It was really a pathetic condition. The children must be aware of the where about of their parents, their job, their financial condition, their social status etc. etc.

When I was a young boy I was completely aware of the financial conditions, the assets and liabilities of my father. Even if he was not a much educated person he used to discuss all financial matters with us. We were completely aware of his business, finance, his ups and falls of business, his investments etc.

Advantages of disclosing financial matters with family

The most important advantage is that if a sudden death occurs, the family can know the financial condition and the where about of your investments. They can recover them easily. If not, even if you are a rich person, your family may not get all those wealth without having much knowledge of them.

The family members also will be confident, if they know about your financials. At least they can know how wealthy they are or how poor they are. Their spending habit also may be controlled, if they know the real financial condition.

If they know about your insurance policies they can claim them at your death or disability.

What should you do to inform the family about your finance?

You must discuss your investments, investment plans and financial goals with your family, at least with your spouse.

Prepare a will and show the details of your assets and investments and how to distribute these assets, if your death is occurred.

Note down all your financial transactions in a diary and tell about the diary to your spouse and children.

Teach your kids how to spend wisely and how to live according to our sources.

Use nomination facilities providing by financial institutions and renew the nomination time to time.

If you take care of these things you can secure the life of your dear ones and also your finance which you earn with your hard earned money.

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