Why is financial awareness a must for both spouses?
This is all the more necessary as the information or sole financial management by one person can put the other in a difficult situation in the event of an unfortunate fate such as their premature death. Prior knowledge of this matter will be beneficial for the well being of the family’s financial health.
Also because fair knowledge of the subject enables both to actively participate in the family’s financial management and, in most cases, leads to healthy decisions.
Here we discuss all of these matters that must be known by both of the main members of the House:
1. Financial assets or total assets can first be discussed:
The starting point in the conversation or when getting to know the wife or husband, the communication can revolve around the various current assets such as gold, FDs, insurance, safe deposit boxes, EPF, PPF etc.
2. When advising on money matters, look for a mutual discussion:
When advising your auditor on tax matters or discussing your investment decision with a financial planner, encourage both of you to get involved in all of these discussions.
This will ensure that your wife understands the techniques you are going to use to build your investment portfolio.
3. Budget preparation can be a joint exercise:
Both short and long term monetary goals can be more realistically achieved if both spouses participate. And this can be done based on wants, needs and wants. Here, too, the desired liquidity and the return aspect must be taken into account in order to achieve the goals.
4. Taxation KT is also a must:
Even if the subject of taxation is not for everyone, you still have to make sure that the spouse still knows some basics. Here, when you start getting her involved, she will sharpen her acumen over time and know all of these tax saving opportunities.
5. Liabilities cannot be hidden either:
She should be aware of both official and unofficial information about your liabilities as well, as she can then become more fair housekeeping while helping you service the various debts you may be burdened with.
6. A proper assessment of the various investments should also be given:
Sometimes some of the investments are difficult to get an actual valuation and therefore a closer value can be given, such as disputed properties or the like. This also applies to gold bars, jewelry and, if applicable, antiques.
7. Knowledge of the insurance plan must not be neglected at any cost:
For reasons of safety and financial well-being, we take out term life insurance and do not provide any information about the various matters, e.g. For example, where the insurance document is kept or who the insurance agent is who is available when the claim is reported can prove to be a tedious task for your spouse when he is running for the assertion of claims.
This document explains how wealth is to be distributed among the heirs in the family. There is also a prudent vision of wealth and investments and how they should be well managed. So if you talk about your “will” with your wife, it will also contribute to sound financial management of the family finances.