Some kids think that their parents owe them a living! Some kids hate spending their parent's money — even a farthing!

This is not about their attitude, it is about their ability to communicate with their parents about money. Recently I met one kid who has got admission in an institute where the total expenses are about Rs 3 million for the whole course — it is a 2 year course.

This boy wanted to know the following:

1. Can my dad really afford this?

2. How much of an impact will it make on his retirement corpus? (father is in service, and will retire in 7 years time)

3. Should I repay this like a loan or is it a gift?

4. If I take a loan will I be able to repay it….and is that a good option?

5. How do I decide whether to do this course at all — personally I do not have so much money to invest/spend?

I was really surprised (actually sad) that this boy needed to ask me (a rank outsider) all these questions! His parents should be answering these questions…..well er…the kid should have

Recently, a new breed of professionals has emerged who are making financial plans for everyone and are not just restricted to investment planning.  A financial plan includes planning for your taxes, retirement, kids' education and marriage, buying a home, estate planning or any other goals which you may have.

This new breed of professionals known as financial planners, write a plan for you with all your goals specifically laid down and then provides you with a road map on how to achieve these goals. He always gives you a holistic account of all your finances keeping all your assets and liabilities into picture, besides taking care of all the risks associated with you and your family and also the assets owned by you.  These financial planners will first collect all the data related to your finances and the goals you have for  future. These goals may be anything like buying a home, planning for your child's education or going for a vacation. After this exercise of data collection, the

Tax planning is often a ritual that people do not give too much importance and is at best considered a necessary evil. More often than not, for individuals, financial planning itself begins and ends with tax planning. The fact however is that tax planning is the first and a very important step towards financial planning.

Suitability Analysis

Today, tax-saving avenues' offer a good range of investment opportunities with different levels of risk, return and liquidity. Choose an appropriate mix of investments keeping in mind your financial objectives. Most of the time, we either take excessive risk or too less risk. Do not get carried away by past data, for eg. when markets are at a high and about to fall, equities will give you the best track record. On the contrary, when interest rates are at a peak, it is the best time to look at fixed income investment avenues and lock-in the interest rates for the long haul.

Given the current condition of the markets, both equity and