Festivals such as Raksha Bandhan are about celebrating the bond between siblings. But they can also be a good opportunity to build better financial habits together. Instead of making the occasion only about short-term spending, siblings can use it to encourage each other to save, invest, and become more financially independent. Paresh N Bhagat, MD and chairperson of Mangal Keshav Financial Services, shared financial lessons siblings should pass on to each other.
Because the money does not immediately leave your bank account, “ Credit cards make spending feel easier. A ₹ 5,000 gift that is invested could ultimately be far more valuable than a ₹ 5,000 hamper that gets consumed within a few days.
It is about using occasions like Raksha Bandhan to introduce better saving and investing habits within the family,” said Paresh. Paresh highlighted that festival gifting does not always have to mean clothes, gadgets or elaborate hampers that lose their value quickly. A more meaningful approach can be to give something that has the potential to build wealth over time. “Depending on the amount, siblings could consider gold or silver, a fixed deposit or a mutual fund investment. The point is not that every gift needs to generate a return. But that convenience can also make it easier to spend more than you intended,” highlighted Paresh. A good habit is to avoid relying on credit for regular expenses and spend money that you can actually afford. High-cost revolving credit-card debt, in particular, should be avoided. Siblings can help keep each other accountable by asking whether a purchase is genuinely affordable, rather than simply whether there is enough credit available to make it. Siblings are often at different stages of their financial lives, which makes these conversations even more valuable. An older sibling can introduce a younger one to the importance of saving and compounding. At the same time, younger siblings may bring greater awareness of newer financial products and investment options. Whether the investment is an FD, mutual fund, gold or another suitable asset, the underlying lesson remains the same: start early, invest regularly and give your money enough time to compound.
