62% of fathers accord the highest priority to their children’s higher studies, whereas only 1%-3% of fathers below the age of 40 now consider their child’s marriage as their primary goal, said a new study.
FinEdge, an investment management company, has released a study highlighting financial goals and investing patterns of fathers across the country at different stages of life.
This study, based on data collected from ~17,000 clients across 1,600 locations with 29,021 financial goals, provides insights into how fathers in India are approaching their financial goal planning today, FinEdge said.
The results shed light on the importance of goal-based investing.
Here are some findings from the study:
Planning For Children’s Higher Studies Gains Urgency After The Age Of 40
The study findings indicate that for fathers below the age of 30, the highest priority goal is to buy a home (26%), with only 6% of them actively planning for their children’s futures
1 in 5 young fathers prioritise “wealth creation” as their top goal, suggesting a more speculative mindset and a lack of purpose-based investing before the age of 30. Planning for children’s higher studies becomes the top priority for 45% of fathers in the 30-40 age bracket and 62% for fathers in the 40-50 age bracket.
Marriage Goal Planning Takes A Backseat
Only 1% of fathers in the 30-40 age bracket and 3% in the 40-50 age bracket consider their children’s marriage as their primary goal.
However, this percentage rises significantly to 21% for fathers above the age of 50.
The study indicates a shifting trend, with more fathers in India prioritising their daughters’ education and empowerment over early marriages.
Retirement Planning Gains Importance, With Younger Fathers Leading The Way
Retirement Planning is increasingly becoming a top priority goal for fathers, irrespective of their age bracket or life stage.
Counterintuitively, the percentage of fathers below 30 years old prioritising their retirement over other goals (26%) was actually found to be higher than those in the 30-40 age bracket (22%)!
Minimal Regional Bias In Prioritising Child’s Future
Location does not seem to influence this goal significantly. 60% of fathers from the north and east regions named planning for their child’s education as their top priority goal, compared to 57% from the west and south.
24% of respondents from the south zone prioritised their retirement over their child’s education compared to 21% from other regions, indicating a marginally higher awareness about the importance of retirement planning in this demographic.
Harsh Gahlaut, co-founder and CEO, said, “The results of the study provide in-depth insights about financial goals and investing patterns of fathers across the country at different life stages. It is very encouraging to witness paradigm shifts on how new fathers are now prioritising their children’s education – or their own retirement – instead of their children’s marriages.”
“Also, it reflects that deep-rooted societal changes are now underway, with more young people exercising their freedom of choice with respect to previously ‘automatic’ life choices such as getting married at a certain age or having kids.”
“Needless to say, fathers play a critical role in setting up a robust financial future for their families. We encourage all fathers to start investing with purpose instead of making ad hoc investments, in order to secure a fantastic financial future for their families,” said Gahlaut.
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