The generation gap is stark across all things – infotainment and lifestyle predominantly. Most Indian children have grown up with tales of their boomer ancestors defying odds, working laborious hours and penny-pinching their way to build homes and afford their current lifestyle. Gen X and millennials had their own share of struggles and prioritised their needs according to family budgets.
Now, most of these grown-ups heavily frown upon Gen Z and their approach to almost everything in life. They are seen as spoiled, entitled, selfish, and a smartphone generation – who are barely smart with their money. Why? Because they prioritise mental health over mental exhaustion. And they are wasting their years on the internet playing activists about things that no one else seems to care about.
The most common complaint that has become a punchline now? This is a generation that does not know how to save because they would rather have a good night out with their “fam” than grow their money to support their family.
Dinner table conversations often turn hostile especially when younger generations feel they do not have the financial freedom to make their own decisions.
Boomers may have been ignorant about how their choices consciously or unconsciously impacted the planet and its climate. They may also have under-valued the significance of certain jobs and crafts in comparison to their neo-conservatism idea of a career. And Gen Z is even right to feel betrayed as they try to understand the bubble of property prices, taxation systems, and exorbitant education fees in return for its economic value.
But it does not hurt to pick a chapter out of the boomer money planning book. Call it conservative but there is merit in the 50-30-20 financial thumb rule. Simply explained the theory recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.
It also abides with the pyramid investment strategy where you put your money into insured and secured asset classes. This means that at the base level you invest in products and assets that offer you guaranteed returns regardless of the economy and its performance. It minimises your risk of running into losses and consolidates your money.
Insurance is one of the most secure categories of investment. HDFC Life Click 2 Protect Super is a non-linked, individual, savings life insurance plan which offers different benefits at different life stage needs and helps you and your family stay truly protected. Key features include:
Get back all premium(s) paid on survival till maturity with the Return of Premium option.
Get an additional amount payable in case of accidental death during the policy term.
Provides Acceleration of Death Benefit on diagnosis of specified terminal illnesses, till age 80 years.
Option to choose increasing Death Benefit up to 200% under Life option.
Option to vary your Death Benefit according to your need under the Life Goal option.
Avail Waiver of Premium on diagnosis of Critical Illness (through WOP CI4 option) and Total and Permanent Disability (through WOP Disability4 option).
Option to choose Additional Cover for Spouse.
For example:
If Sara earns, Rs. 40k a month – under the current new tax regime, she does not have to pay any tax. According to the 50-30-20 thumb rule, she should be able to set aside about Rs. 8k after rent, groceries, monthly subscriptions, and her other utility expenses. Even if she can invest Rs. 2k every month, she can afford to pay an insurance premium of Rs.24k every year. The medical benefits, security, and compounding value of such an investment when Sara is nearing retirement is priceless.
She can invest the remaining Rs. 6k of her income in other asset classes that are currently uber cool with her “fam” while giving less for her family to complain.
Visit here to know about HDFC Life Click 2 Protect Super policy and its eligibility.
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