Mother's Day 2024: 5 actionable steps to manage finances for a mother caring for both ageing parents and children

livemint.com:

ageing parents and children, especially on this occasion of Mother's Day: 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.

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.

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. 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.