Life is unpredictable. Everyone grows old and dies one day. People also fall sick and may become handicapped. Parents are human too and do become older. One day you might have to take over the financial decisions made by them so far in the family and it will happen to you in the future as well that your children will grow up and take over the financial reins. There are certain things that one must know so that this financial transition happens smoothly without any complication.
- The most important step is that children should be aware of the value of money and how to make wise choices when money is invested or used to buy stuff. For example, parents and children can choose to buy edutainment games from StarWalkKids, which are useful and entertaining at the same time.
- Documents are the most significant part of finance. Ensure that all the documents about bank accounts and investments are in place. Collect, inspect and understand all these documents.
- Ensure that bills are paid on time. This will save extra charges and things will run smoothly.
- Check out for power of attorney given to anyone or and any trust taking care of the financial matters.
- Hire a financial consultant. This will help to make the entire operation easy.
- Try to check out the debt and credit statements. Bank savings accounts, deposits, and lockers should be checked in the presence of witnesses.
- Once everything is clear then you can change the investments to make them more relevant to the future or according to the advice of the planners.
Whether you take over the finances of your parents or foresee the same from your kids doing it for you in future, be prepared and ensure that documentation is the key to a sound financial system. Orderly maintained records will always help in the easy and smooth transition of financial management from one generation to the next.