The very first investing lesson began from a place we call “ghar”. Remember those childhood days when visiting relatives and family friends gave some money for “buying treats”? The thrill of receiv-ing money, putting it in a piggy bank, then waiting for the piggy bank to fill so you could buy some-thing of your choice – it was a wonderful feeling!

It also taught us about savings, financial goals, and the value of money. While one Rs. 10 note could buy a chocolate bar, several such Rs. 10 notes could eventually help buy a cricket set! Little invest-ments helped achieve bigger goals.

For many, this was the introduction to the concept of Systematic Investment Plan (SIP).

Also Read - What is SIP?

Holding on to the Savings Habit:

This habit of piggy bank savings taught more than just saving money – it taught financial discipline, and setting and prioritizing goals: buying a bar of chocolate gave temporary happiness, while a cricket set made for multiple happy times!

Built on this habit of disciplined savings is the concept of SIP – saving up a certain amount regularly for a pre-planned goal not only makes goal realization easier, but brings a sense of fulfilment. This is even better than piggy banks; those could only store money – SIPs invest your money in equity and debt markets, and can help you earn returns on your savings.

Today’s tech-savvy children are more advanced in their understanding of money and investing. Guiding them from a young age on how to invest using SIP helps inculcate better money values and teach them the power of goal setting.

Also Read - How to Invest in SIP?

One goal, one SIP:

Everyone has a goal. In a family, each member has different needs and dreams. Maybe Dad wants a bigger car, while Mom wants to start her own business; Grandma and Grandpa want to go on a trip with their peers to relive old times. Kids have their own needs – new toys, gadgets, or even saving up for specialized courses. Each goal is important and unique in itself. Some goals have a longer time frame, some need higher investment. Can 1 SIP satisfy all requirements?

Every family member needs a separate SIP for every goal. Depending on the time period and end amount, every family member can start a SIP. For instance, Mom can have two SIPs, one equity SIP for her long-term goal of starting her own business, and one debt fund SIP for her short-term goal of buying a new phone or sofa.

Kids have the greatest advantage on their side – Time. If they start right away, they can save up enough for their future studies. A monthly SIP of just Rs. 100 in an equity fund can snowball into a large sum in 10-12 years. Smaller SIPs can help realize specific goals such as buying a new laptop or a cycle faster and without borrowing money from elders. This could inculcate a sense of responsi-bility and financial independence in them, and lead them towards a debt-free life.

Similarly, the grandparents can also independently fund their trip without the hesitancy or limita-tions of asking their children for monetary support. More than realizing goals, SIP gives every member of the family financial independence.

Family Goal Family SIP:

While individual goals are important, every family also has some common goals. Sometimes, big dreams like buying a new house or planning a big family vacation take the back seat in trying to ful-fil smaller dreams first. Funds saved for the big goal end up being used in other matters. You can safeguard the family goal with one common family SIP.

If every member of the family contributes regularly to the common “Family Dream SIP”, even big financial goals can be achieved with less burden and comparatively faster than just ‘storing’ money using a traditional saving method. Investing in a SIP will add to your savings, making them grow in a regular, systematic manner. A common family SIP could also discourage the reallocation of funds elsewhere. This determination and resolve only make the family bond stronger and through unit-ed efforts, big goals can ultimately be realized.

SIP - A Way of Life:

Contrary to popular belief, investing is not only for those who earn big bucks. With a tool like SIP, even the smallest contribution, if done regularly, can make a big difference. By regularly investing through SIP, saving and investing soon becomes a way of life. Such financial discipline aids in realiz-ing not just short-term aspirations but also long-term goals such as retirement planning.

Introducing your family to the power of SIP can help transform many of your dreams into reality. From a person-specific “Har Ek SIP”, it’s time to get to the next stage of “Har Ghar SIP” – for, a fami-ly that SIPs together, stays happily together!

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.