As a common man we all need to plan our financial needs, we common man have a very old traditional culture of savings. From the old age we have various tendencies from our old age to save for our small needs.
Traditionally we use to have Gullak from the childhood to adapt a tradition of saving, we are being taught to save for emergency and for future plannings.
Necessity and priorities changes with human age life cycle.
Human life cycle can be described in various phases of age and well defined with responsibilities.
Phase 1 Nascent age 0 to 10
Phase 2 Adolescent age 11 to 20
Phase 3 Youngster age 21 to 28
Phase 4 Parental age 29 to 50
Phase 5 Senior parental age 51 to 65
Phase 6 Senior retirement age 66 onwards
We have as a common man responsibility, to learn and adapt financial planning with different phases.
I will try to describe various possible responsibilities for planning at different ages.
In this phase we are dependent on our parents but parents have the responsibilities to teach basic saving habits for example
They can provide gullaks and ask them to deposit the money whatever they receive from parents and various visiting friends and every six months take the money either buy the amenities like toys or invest the amount in various investment aps
Child will learn the value of saved money here when he receives toys of his choice from his savings
THIS HABIT WILL FURTHER NURTURE THE GENES TO SAVE THE MONEY FROM CHILDHOOD.
In this phase the child has grown enough to understand the saving and to value the saving , now try to make the child save in the minority accounts and make them responsible to learn how to spend the saved money at the highest priority values.
This habit will make them avoid the overspending the money with friends, healthy spending habits make child responsible for future. Always keep an eye on the children spending money habits so that they don’t get involved in wrong habits this financial education makes the mature enough for future.
This is the phase which is most important age where an individual bridges his plan for future financial growth. Since the individual either completes his higher education, and gets the earning opportunity with career placements. Or individual prepares for various government jobs during this phase also individual tries to earn for expenses.
During this phase of initial earning startup, we can opt for small savings
This is a phase when an individual is married and starts planning for future of children.
now he has to understand the added responsibilities of family.
Now the planning has to be serious and long term.
This is a phase where you have to plan for higher education, marriages of children and retirement after age of 65 when you are not fit to work further.
You need to be well equipped in this age that you are not financially dependent on your children, you need to free and be supportive to your children so if struggling your children are well settled.