Father’s Day is an annual celebration that honours and celebrates fatherhood, paternal bonds, and their critical influence in society. It is also a good time for fathers to consider the critical role they play in the family, take stock, and carefully consider their responsibilities by implementing important financial steps to secure their families.
They also play an important role in managing and addressing money matters within a family. They often contribute to the financial stability and well-being of their households by earning income, making financial decisions, and providing for the needs of their children and partners. Here are some key aspects related to fathers and money matters. Below are some financial tips for fathers:
1. Have Money Conversations
Money issues are a leading cause of friction in relationships and marriages. Keeping financial problems to yourself makes things worse and damages the fabric and stability of your relationship. Discuss any worries with your spouse as sharing the burden eases it. If you hide your wealth from your spouse or partner, the mother of your children, leaving her completely in the dark, this will only breed mistrust and put a strain on your relationship.
2. Do you have an Emergency Fund?
Your emergency fund should have enough cash to cover at least six months of living expenses. If you can’t achieve that just yet, start small but meticulously. Each month, if you as soon as you receive income, try to set aside a certain sum towards savings. Automating your savings is the most convenient way of achieving this. At a time of rising inflation, the need for an emergency fund is more glaring than ever to tide you over challenging times.
3. Review your insurance
Life insurance is a must for dads. We tend to assume that bad things won’t happen to us and far too many people ignore the need for insurance until a major mishap or setback occurs; it is then that the impact of inadequate insurance coverage becomes glaring. No matter how meticulous you are with your finances, failure to purchase adequate insurance coverage can impair your financial future and put you and your loved ones in a desperate situation in an instant. Motor vehicle, household, health and life insurance, are just a few of the various policies that are available to protect you and your family. There are excellent educational plans that encourage you to plan for several years before you need the money.
4. Plan for Your Children’s Education
For many people, children’s education costs rank as one of the largest expenses you will ever face. And as such it must be carefully planned for. Thinking about your young children’s future education may seem like a lifetime away. However, with the rising costs of education, if sound investments are not made now, covering the huge expenses for secondary and tertiary education may be a challenge. When your children are still young, you have the benefit of time to select investments that offer the prospect of higher returns over the long term. It takes discipline, consistency and sacrifice to amass the money that you need to educate them and give them the best chances in life.
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5. Next of Kin
It is often clear when a man dies who his next of kin would be; the mother of his children. However, this is not always the case across cultures. Nigeria, for instance, is a country where men commonly choose their brother as their next of kin should they die. This decision is made based on the traditional extended family system where other family members can often claim property that belongs to a brother. Having a wife as your next of kin will ensure that she and her children are taken care of during this difficult time. There are numerous examples of widows having to cope with not only the loss of their spouse but also of all their possessions and property.
Having a wife as your next of kin will ensure that she and her children are taken care of during this difficult time. Click To Tweet
Many people assume that if they pass on, their spouse will automatically become a beneficiary of their estate. If you were to die intestate, that is, without leaving a will, your property will not simply pass to your spouse as you might think; the law prioritizes your next of kin, and your property will be distributed according to laws of intestacy, which may vary from state to state.
6. Have an Estate Plan
It is only by having precise estate planning that you can protect your immediate family. Ensure that your investments, property and other assets do not go into the wrong hands.
Review and update your will, trust and other estate planning documents from time to time. Be certain that they are by your current status and intentions
7. Review your Beneficiary Designations
It is important to check beneficiary designations periodically. Such as once a year, to make sure that they are up to date. At some time or the other, you will probably have to update your next of kin. Many people don’t take this designation that seriously and sometimes even forget whom they designated.
8. Assign a Guardian for your minor children
Considering the worst-case scenario is something that no one likes to think about. In the case something happens to both you and your spouse; you want to be sure that your children will be well taken care of. Some couples disagree about who would play that role. For example, should it be a brother, sister or friend? If you haven’t made your wishes clear, the court will appoint someone without any guidance from you. And it may be someone that you do not want to raise your children.
It would help if you considered several factors including where the guardians live, and their financial situation. Click To Tweet
Also, the way their children are being raised, their spouse and so on. Sit down with your spouse, to discuss the pros and cons of various options and come to a decision and include this in your will. Inform the guardians so they are not caught unawares.
In the end, all the money in the world cannot replace that precious time for bonding and nurturing relationships with your family. Your presence means more than all the presents. Make the time.
In the end, all the money in the world cannot replace that precious time for bonding and nurturing relationships with your family. Click To TweetNimi Akinkugbe is a financial expert with years of experience. She has created platforms to help people learn about their finances and improve their understanding. Her insights are frank and practical, helping people take control of their lives.
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