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Here are some amazing financial gifts for your parents

April 13, 2018 10:29 AM

Parents are the greatest gifts you ever received. They work all their life and fulfil all your dreams. It is but natural to have a desire to do something for them when you can. Giving back to parents will make them happy not only because they’re receiving a gift, but also because it’d mean they raised you right and you are truly independent now. Nothing else would make parents happier than seeing their children independent and thriving.

Your parents value your time and their money the most. With growing age, depleting health and income, they find themselves at a stage where it’s hard for them to look for investment options that can maximise the returns on their hard-earned savings and help them fight inflation. Doing something to help them financially would be a gift they’d cherish. Here are a few ways you can show your concern and affection for your parents:

Talk finances with your parents

This is where you start – by talking to your parents to determine how much help they’re going to need. Your parents may have saved enough to cover their expenses post-retirement or conversely, they may not be in such a sound financial situation and may require help.If it’s the latter, you need to help them create a plan that will help them live affordably and well within their means. You could suggest them moving to an area with a lower cost of living, moving in with family, or finding a way to earn money even after they’ve retired.

Plan a budget to help them

Planning a budget to help your parents is crucial. This could mean setting aside money for medical emergencies. It could also mean having them over for meals or making time to do grocery shopping for them.You can make a stressful situation less-stressful by setting aside some money for these expenses. However, you should always discuss these matters with your spouse and not spend money without your partner’s knowledge.

Gift Health Insurance to your parents

As our parents’ age advances, their good health becomes one of our major concerns.With rising medical costs and increasing dependence on private hospitals for quality healthcare, health insurance has become an absolute necessity. By gifting the best health insurance policy in the market to your parents, you can help them live a stress-free and secure life in their retirement days.

With an increase in age, the chances of falling ill also increased. Medical insurance for your parents will ensure good medical treatment for them without worrying about healthcare expenses. You can also add a super top-up policy to the current health insurance for parentsand expand the health cover. A super top-up policy helps in expanding the current medical cover at easy premium rates.

Moreover, in this Union Budget, the government has increased the tax benefit on senior citizen health insurance policies from Rs 30,000 to Rs 50,000. It means, you can secure not only the health of your parents but you can save your tax as well.

Help your parents in their investment

Once you have discussed your finances with your parents, the next is to help them with their investment. There are various investment products where you can make investments in the name of your parents and help them enjoy its returns. For instance, you can invest in post office monthly income scheme for your parents. Monthly Income Scheme (MIS) promises guaranteed returns at an interest rate of 7.7% per annum. Your parents can avail these returns as fixed monthly income. This is a scheme that’s much better than instruments that are debt-based.

Similarly, for a short-tenure, you can invest in liquid funds which have a very low maturity period. For most of the parents, investment is all about fixed deposit only. As the children, it is your responsibility to help themwith their investments.

Conclusion

Your parents have worked hard to provide world’s happiness to you. Now it’s your turn to reciprocate the same. While, for any parent, the time of their kids is the most beautiful gift, this time go one step ahead and secure them financially.

 

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