WITH MARRIAGE COMES GREATER RESPONSIBILITIES

Marriage leads to a change in ones life and responsibilities. Marriage comes with
loads of responsibilities of ones own, spouse and children. Indian population is slowly
moving to urban lifestyle which is leading to prevalence of nuclear families.
Latest trend among the newly married and young earners is shopping, maintaining
and improving their standard of living. They tend to spend more than they earn and fulfill
their capital requirements via loans. They have reversed the process of building their
portfolio and have loaded themselves with loads of EMIs for house, electronic gadgets, and
leisure. proper financial planning may help them attain these goals without any loans and
rather placing them in a winning position.

!"ource# $Long%term benefits will be based on saving behaviour$ by "arab&eet '. "en,
ugust ()*+ edition, business today
,orm the above survey we can see how priorities have changed their personal
aspiration have increased by - points showing people are becoming more self centric and
having only short term goals. Their retirement priorities have also increased because they
want to retire at an early age. .ut the most important priorities related towards the family
has decreased tremendously. This is a real worrying situation as family should be the first
priority for any one.
young married couple is generally between ( phases of financial life cycle i.e.,
wealth protection and wealth accumulation. .asic problem a young pair may face may be as
follows/
Defining proper goals.
The first most important problem is defining the goals that they may want in there
coming future. These goals must be "M0T/ 1"mart, Measurable, ttainable, 0ealistic
and Time bound2 so that the possibility of attaining the goal is possible. wrongly
managed goal may lead to a possibility of failure.
Upa!ing finan"ial o"#$en!s.
newly married pair faces the most pu33ling problem of updating the financial
documents. The most important question one face is weather to merge the accounts of
the couple or 4eep them separate especially in case when both of them are wor4ing. The
necessity of change in documents if required or not.
Crea!ing a spening plan.
The newly married have various goals for their future for which a well spending plan
is necessary. n improper plan may lead to failure of the financial plan.
De!er$ining life ins#ran"e nees.
fter the marriage insurance is the most important product that the members should
have. The earning member should have an adequate term insurance. The adequacy is
very important because incase of death, disability or critical illness the person is not able
to earn and thus term insurance is very compulsory. term insurance that will be
adequate in todays conte5t should be above * crore. Life insurance is also to helpful tool
to invest in plans li4e 6LI7, endowment, etc.
De!er$ining fa$il%&s 'eal!' ins#ran"e nee.

8ealth insurance is a necessity for the newly married because of the of the
future health problems that they may face. The maternity related problems are one
of the most costliest e5pense they may face few years down the line. lso the health
of their parents is also a very important concern as all the savings may be drained
for treatment of the parents. Last but not the least a health insurance for self is also
very important.

De!er$ining !'e nee of ne( 'o#se.
newly married couple generally li4es to have their own home in few years
after marriage which is quite e5pensive and thus a good plan is necessary to fulfill.
9ith the increasing real estate rates and increasing interest rates buying a new
home in metros or developed cities is a difficult &ob. proper planning is required to
fulfill the goal.
Managing in"rease nee for "rei!.
9ith increasing demands of the family their can also be a need to ta4e short
term credit. These credit should be avoided as it may hamper the long term goals
and the proper management is very necessary. The inclination towards buying
various new electronic gadgets has led to buying these products via loans and thus
disturbing the ongoing plan.
E)paning "areer goals.

The need to e5pand the career goals is a very important to improve the
standard of living and fulfill the goals. The newly married may go in for some or the
other training or start their own business in a few years which requires a
considerable amount of money. s per the :EM 1global entrepreneurship monitor2
En!reprene#rial In!en!ion 7ercentage of *-%;< population 1individuals involved in
any stage of entrepreneurial activity e5cluded2 who intend to start a business within
three years is ((.-= second highest among .0I>" nations, 6", 6' and ustralia.

Ma!erni!% planning.

7lanning a child is the biggest question among the young married couple.
They need to plan the maternity insurance need as it is one of the most important.
t present a normal?>%section delivery and related post delivery costs may amount
to @)))) to *))))). In case of any complications the amount may also go up. Thus
a necessity to have maternity insurance is very important.

C'il*+earing an raising.

8aving a child or two is a very difficult &ob as the cost of raising another
family member is very difficult. To raise a child one requires quite a lot of money for
their medical and other needs. 7lanning for liquid fund is a very essential to fulfill
any need of the child that is related to them.

S!ar!ing an e#"a!ion f#n for "'ilren.

The biggest and the most important planning that young parents may face is
the education of their children which is a very costly. In metros and cities pre
nursery or nursery admissions may cost from @)))) to @))))) depending
upon your choice. Ta4ing an average of < years from now if the admission
requires * lac with A= inflation the future cost would be *.< lac.B. In case of
their higher education following are the estimates.
A"!#al "os! of C'il E#"a!ion (i!' Toa%&s Cos! of E#"a!ion

>hild ge ) year ,aculty Indian Education
,ees
Cverseas Edu. ,ees
.. ( L'8 @ L'8
M. age () < L'8 *) L'8
ED::. E L'8 *@ L'8
MEFI>L <) L'8 * >0C0E

Af!er ,- %ears Re.#ire (i!' $in. ,/0 Infla!ion

>hild t *E Gears ,aculty Indian Education
,ees
Cverseas Edu. ,ees
.. *) L'8 (; L'8
M. age () (E L'8 @) L'8
ED::. +@ L'8 E; L'8
MEFI>L ( >0C0E @ >0C0E


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Than4s and 0egards,
'irang :andhi
Independent ,inancial 7lanner
http#??www.fpindia.in
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