5 Financial Gifts For Your Sibling This Bhai Dooj

Posted: October 31, 2018

With the festive season coming up, let’s reinvent this Bhai Dooj and make it one where both brother and sister promise to care for each other – in positive, long-term ways and not just for today. 

Hate them or love them, there’s no better friend than your siblings! They make your life hell, can never keep a secret from your parents and are always hungry for no apparent reason, yet their love for you knows no boundaries. This bhai dooj, therefore, maybe it’s time when you spell out your unrequited love for your siblings with a thoughtful token.

And we are not talking about those usual: handbags, watches, jewellery, cosmetic kits, Xbox, or a box of chocolates. Rather the token should be an instrument that can bring a smile on their faces and also protect them against all contingencies in life. To help, here are a few truly distinctive financial gifts ideas for your siblings. Take a look.




Start with a ULIP to help them plan their financial goals

All of us have goals in life. Be it purchasing a home, travelling for leisure, buying a vehicle or obtaining a higher education; all these goals need a significant amount of money. Saving money alone cannot help you do it. You need to invest your savings systematically in money market instruments to create wealth.

This bhai dooj, you can introduce your siblings to the world of money markets and the benefits of investments by helping them start putting money into a ULIP plan. With a ULIP plan, you can not only help your siblings reap the benefits of investing in a variety of market-linked funds but also protect them from all contingencies of life with the life cover benefits of the policy.

Since the premium paid for ULIPs is invested into a combination of equity and debt funds, the investment returns are subject to the volatility of the financial market. However, reputable insurers help you monitor the performance of your investments on a regular basis through NAV updates. Insurers like Future Generali also give you the benefit of switching between funds in a financial year, without paying any additional charges. Therefore, helping your siblings start a ULIP plan is one of the best financial gifts you can ever give them.

Open a savings account for your sibling

The adage of “A penny saved is a penny earned” is relevant even today. Therefore, if your sibling still doesn’t have a savings account, you must help them open one immediately with a reputable bank. As their bhai dooj gift, you can deposit some gift money as the first contribution to this savings bank account.

While putting money into a savings bank account may not earn high returns such as those from ULIPs or ELSS, it will help your sibling understand the value of saving. The decision would also give them the financial independence to use the gift money as they desire. Further, you can introduce them to the benefits and ease of using an ATM-cum-debit card and online banking.

Buy them a health cover

Nowadays, long working hours, unrelenting stress, lack of physical exercises and binge eating junk foods, all make us more vulnerable to a variety of ailments. Their treatment, in turn, puts us in a precarious position financially as the medical bills eating into our savings.

Therefore, if you want to make sure that your siblings don’t have to go through the ordeal of incurring substantial medical expenses, you can purchase a health insurance plan for them and pay the premium on their behalf.

Start a fixed deposit in their name

While opening a savings account would help your siblings comprehend the virtue of saving money, contributing towards a bank Fixed Deposit in their name would add to their financial security. With a fixed deposit, your siblings would avail a significantly higher rate of interest than savings bank account contributions and a risk-free income from interest accrued.

Gift a credit card to your siblings

A credit card might not seem an ideal choice for a gift on Bhai Dooj. However, it would go a long way in helping your siblings understand the importance of credit management and its role in maintaining a healthy credit score. This way, they can work on their creditworthiness and credit behaviour starting small. However, you may want to explain to them the disadvantages of credit card misuse and falling into a debt trap, before handing over the card.

Festivals are a great occasion to cherish the special bond of friendship that you share with your siblings. Your siblings might be your worst critic in the world; however, they are also your best admirers in the world. Therefore, it becomes your responsibility to introduce them to the virtues of financial security and financial freedom. This Bhai Dooj, you can help your siblings restructure her liabilities and explore the world of money market investments.

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