Mother’s Day 2024: Five useful tips to manage finances for a caregiver woman

As Mother’s Day approaches, it’s a poignant moment to recognize the unsung heroes among us—mothers who find themselves balancing the demands of caring for both their children and ageing parents. In this modern era, characterised by its unique blend of emotional, physical, and financial challenges, mothers stand at the intersection of caregiving and financial stewardship.

For these mothers, the responsibility of managing their family’s financial well-being can feel like navigating uncharted waters. From juggling medical emergencies to providing for their children’s future, the burden can be overwhelming. However, amidst these challenges, there are practical strategies that can offer solace and stability.

Here are some actionable steps for managing finances as a mother caring for both ageing parents and children, especially on this occasion of Mother’s Day:

Support fund and health insurance for parents

In an era of escalating healthcare costs, having robust health insurance coverage is essential. Setting up a dedicated parents’ support fund, alongside investing in health insurance, can provide a safety net for unforeseen medical expenses. This fund should be distinct from contingency funds and can be invested in instruments such as arbitrage or liquid funds for liquidity and stability.

Maximising post-retirement funds for elderly parents

Many elderly parents may have traditionally favoured investments in real estate, gold, or traditional insurance plans. Assisting elderly parents in diversifying their post-retirement investments can ensure a steady income stream while safeguarding their financial security. Investing in avenues like Senior Citizens Savings Scheme (SCSS), annuity plans, or Pradhan Mantri Vaya Vandana Yojana can provide regular income while safeguarding capital, ensuring lower pressure on your financial status.

Protecting their wishes by facilitating parental will drafting

While it is painful to think of the finality of old age, encouraging parents to draft a will enables them to retain control over their assets. This can facilitate a smooth transition of assets, reducing the likelihood of disputes among heirs.

Investing today for a better future for children

For mothers managing the financial well-being of their children, investing early in children’s futures through equity SIPs can harness the power of compounding, laying a strong financial foundation for their education and beyond. Further, instilling financial discipline in children from an early age and involving them in discussions about family finances can impart valuable lessons about responsible money management, making them capable of handling their finances optimally in their adulthood.

Avoid high-risk products and follow prudent paths to prosperity

While striving for financial security, it’s prudent to steer clear of high-risk investment ventures and opt for well-understood, diversified portfolios.

By implementing these practical strategies and fostering open communication, mothers can navigate the challenges of caring for ageing parents and children while safeguarding their own financial well-being. Here’s to the mothers who embody strength, resilience, and unwavering love. Celebrating the ONE woman who shaped your world and believed in you, always – Happy Mother’s Day!

Anupama Sharma is Executive Director, 360 ONE Wealth.

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Published: 12 May 2024, 10:25 AM IST