Mother's Day 2024: Top 6 ideas to empower your mother with financial independence

I remember my childhood days, wherein we stayed in a traditional joint family and I grew up carefree along with my siblings and cousins. Back in mid-1990’s, my mother, along with my grandmother, took great pride and delight in spending time with us, educating us, playing with us, cooking for us and feeding us. I fondly remember my mother imparting crucial life lessons with stories, and also demonstrating many of the life lessons in how she would conduct her daily activities, including finances. These life lessons are deeply etched in my memory, and some of the crucial lessons have been on understanding value of money and being independent in thought and finances.

Back in those days, majority families stayed in joint families and investments were largely in the form of gold (especially gold jewellery), silver and real estate. But now, we have many investment avenues, and with majority of families living in a nuclear family set up, it becomes crucial for many to own a home, save for retirement, diversify investments and invest in education, including financial literacy/awareness.

This Mother’s Day can be a significant opportunity to showcase our heartfelt appreciation for the tireless efforts our mothers take in supporting us throughout and to also help them secure their future. I believe being financially secure or independent is the best gift, and as part of this article, I share a few thoughts on how our mothers can be financially independent or how best you could support your mother towards achieving this goal.

Fund a micro business – In a rapidly changing landscape, women are redefining traditional roles and many are eager to start their own ventures or business, which may require some initial capital to begin with. While gold serves as a crucial security for women and households, some idle gold jewellery can be put to best use to pursue entrepreneurial aspirations. Gold loans can serve as a crucial funding resource in transforming these aspirations into tangible business ideas. Gold loan presents a promising avenue as it guarantees quick and easy approval, needs zero to minimum documentation, and enables quick access to funds for women entrepreneurs to meet their business or financial needs.

Retirement fund – Retirement planning is a significant leg of any financial strategy. These savings will help a mother in being independent and she can be financially secure in her sunset years. Assist her in opening a retirement account and contributing to it regularly. Depending on risk appetite, the retirement planning instruments can range from investing in NPS, Fixed Deposits, senior’s citizen saving schemes, and even NCDs of best corporates. This will give her a regular source of income with guaranteed returns over years.

Initiating a mutual fund SIP - Opening a mutual funds account in her name with a lump sum amount or through SIPs can give her the option of growing her money faster during her retirement years and having enough resources to be financially comfortable. The selection of SIP can depend upon the future goals of your mother and family, including funding a home, or even taking a dream vacation.

Managing medical emergencies through health insurance - Often, women focus so much on caring for others that they overlook their own health. Whether, a single mother, a stay-at-home, or working mother, investing in one’s physical and mental health is crucial for a good quality of life. Besides, a health insurance is a must have to not only safeguard against medical emergencies, but also helps in financial security and peace of mind. Gifting a health insurance will ensure access to quality healthcare services for your mother and the required medical treatments without worrying about the related costs.

Real estate planning – Often real estate planning is neglected as part of financial strategy. Owing to dependability of real estate and emotional security, women view home ownership as an important asset and milestone in achieving financial stability. Help your mother in owning a home, or as the case may be, gift her estate planning services which will help secure her legacy and ensure that her assets are distributed according to her wishes.

>>Mother's Day 2024: Ten financial tips for empowering mothers on this day, May 12

Creating a will for the children – Not having wills in place will have a huge impact on the family. Hence, communicate with your mother and encourage her to formulate a will and make her wishes known to avoid any potential disputes.

Financial gifts are a practical and thoughtful way to show your appreciation for your mother on Mother's Day. With the advent of technology and innumerable investment avenues in India, young mothers can embark on their journey for financial independence or kids can hand-hold their mothers to embark upon their journey towards a secure financial future.

Mr. George Alexander Muthoot, the author of this article, is MD of Muthoot Finance.