Move Over Cash! 5 Gifts That Can Help Your Sister Secure Her Financial Future This Raksha Bandhan

With just about a week left for every sibling's favourite festival Raksha Bandhan, many brothers must be thinking about what gift they should give to their sister. One thing that is among the most common gifts brothers tend to give to their sisters is money in the form of cash, isn't it? But this Raksha Bandhan, why not give such a financial gift that can actually help secure her financial future?

Wondering how? Read on as we suggest five gifts that help your sister secure her financial future this Raksha Bandhan:

5 Gifts That Can Help Your Sister Secure Her Financial Future This Raksha Bandhan

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1. Encourage Her To Invest In SIPs

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One of the best financial gifts you can give to your sister is of encouraging her to start investing in mutual funds through SIP route. It's time to move over sub-optimal investment options such as bank FDs, PPF, RDs etc, especially for long-term wealth creation. So this Raksha Bandhan, why not encourage your sister to start a SIP with whatever amount she can, even if it's Rs 500 a month, to begin with?

SIPs will build a habit to keep investing in equities and fetch good returns without putting a lot of strain on your finances or timing the market.

2. Get Her Into The Habit Of Maintaining An Emergency Fund

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If the past three pandemic-hit years weren't enough, then the sudden and mass layoffs should have at least made you realize the absolute necessity of having an adequate emergency fund in place, right?

So, in case your sister does not have an emergency fund yet and is unaware of the concept, it would be a wonderful financial gift to make her understand and start maintaining a rainy day fund. This is also the among the first steps towards financial independence. For the unversed, an emergency fund acts as a cushion during financial emergencies that can be in the form of a sudden job loss, severe illness, disability, or significant pay cut. In all such adverse events in financial life which can temporarily hamper your income inflow, having an emergency fund is what can rescue you by helping you carry on with your recurring monthly expenses.

It is usually advisable to have an emergency fund with an amount equal to at least six months of your recurring monthly expenses. The mandatory recurring monthly expenses to factor in the emergency fund are your rent, utility bills, loan EMIs, monthly investment contributions (like SIPs), insurance premiums, children¡¯s education fees, etc.

3. Ensure That She Has Health Insurance

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Besides emergency funds, having health insurance too is no less than a necessity, especially with rising medical costs. So this Raksha Bandhan, ensure that you help your sister realise the importance of health insurance. Make her keep in mind that having a health insurance policy with adequate coverage reduces the risk emanating from rising healthcare costs.

Even if your sister is employed and her employer provides coverage under group health policies, remember that such coverage is usually inadequate to meet hospitalisation costs, and such policies lapse once they switch organisations. That is why it is important to have a separate health insurance policy in place so that a single hospitalization bill does not end up eradicating your lifelong savings.

Also Read: 7 Benefits Of Buying Health Insurance Right Away

4. Make Her Aware Of Women Centric Financial Benefits

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Seldom are women aware of the financial benefits and facilities that they can avail. There are a host of benefits that women can benefit from financially, such as Sukanya Samriddhi Yojana, some women-specific savings accounts offered by banks, lower life insurance premiums, beneficiary schemes for women entrepreneurs and lower loan interest rates (especially for home loans) and lower stamp duty charges as well.

So unless your sister is aware of these benefits, she would not be able to benefit from them, right? So this Raksha Bandhan, why not help her understand and utilise these benefits?

5. Ditch The Typical Physical Gold

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Giving gold jewellery such as a bracelet or chain or ring is a common form of gift women tend to get, including on the occasion of Raksha Bandhan. But have you ever attempted to explore the ¡®not-so-known¡¯ ways of purchasing or investing in gold for yourself or your sister, besides the age-old way of having it as jewellery? In fact, there are multiple ways in which you can add the glitter of gold to your portfolio. You can explore Sovereign Gold Bonds (SGB), Gold ETFs, Gold Funds and digital gold.

Click here to know more.

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