How to Raise Financially Responsible Children – Decoding the Herculean Task of Doing it Right

“We cannot always build a future for our youth, but we can always build our youth for the future.” ― Franklin D. Roosevelt


With COVID-19 doing the rounds and in testing times like these, this old saying holds a lot of significance in today’s world. 

Raising well-rounded children is probably one of the trickiest tasks for all parents or parties involved. While every kid’s childhood should be about making memories – filled with cuddles, joy, laughter, and love, it is also equally important for them to have a balanced upbringing – one where you nurture them to be financially independent, prudent, and resilient. At a very young age, most children start imitating their parents, and therefore it is vital for adults-in-charge of care to set an example from the get-go. 

While moral parenting is the most crucial aspect of child-rearing, teaching them about the other realities of life, including budgeting and success, talking to them about making the buck and its responsibilities, and cultivating leadership skills, etc., isn’t a straightforward mission. Honestly, there is no science or secret ingredient to it, but in this article, we aim to share a few best practises to raise children responsibly while handling the ‘moolah’ obligations of the real world for it is not only sufficient to make money, but it is also imperative to handle it well. 

First and foremost, money habits begin at home and very early on – always be vocal and transparent about money, budgets, and more. To start off, it is not necessary that your kid must accurately know how much you earn or save, but they must aware of how much the candy they crave for costs. This helps them compare. A general scale of economics can be introduced when the kid is young itself. For example, the kid doesn’t need to know how much an airplane costs exactly, but they can be educated that it costs more than a car, which costs more than a bike, which in turn costs more than the candy they want. This helps them make micro-decisions like in a supermarket, which will help develop their calculative skills and make better money judgments in the future. 

Learn to say “No” – the hardest of them all but also the most crucial. I know it probably breaks your heart to deny your child what they want at that moment, but sometimes teaching restraint is key to learning the concept of compromise. This helps put things in perspective to slowly introduce the idea of saving for the future.

Engage them in household chores and provide pocket money accordingly – this helps outline some basic responsibilities and teaches them the work-and-get-paid model. Not necessarily that all chores have to be salaried, some chores are for learning and experiencing. This helps them divide activities and understand how to manage a regular allowance system. Offer extra bonuses, incentives, and rewards if they are regular and organized so they feel recognized, valued, and respected. However, ensure that this doesn’t become a complete barter system.  

Teach, but don’t over teach – always understand who they are, use small examples, and try to speak in their language. Create new definitions and use practical models to explain novel and intangible concepts. Kids are keen and early observers and are always learning the silent lessons too. So, make sure you are always aware of what you are saying and how you are behaving around them as they pick up on things when you least expect. 

Real money is the real deal – give them real money (of course in small amounts) and explain how to distribute their funds. Play money doesn’t always set the tone of seriousness required to teach them about money management. 

Keep an account and do a regular tally – spend time with them and create flowcharts to make it easy to track all expenses. Introduce simple financial tools that they can use to handle money matters. 

Don’t make them scared of failing – this is a very important lesson to instil. Handling failures is part and parcel in the journey of learning. Let them know that it’s perfectly okay to fail and let them experience the consequences of failing but at the same time, help them make notes on what caused the obstacles in the first place and brainstorm strategies to overcome them the next time around.

Dividing money – show them how to split their money, this even helps track spending. Teach them how to create a monthly plan and allot money for different purposes, including buying essentials, clearing bills, saving for the future, and even keeping a fixed amount to donate. In addition, introducing a tax jar, where they put a portion of their money each month, can be a useful and concrete way of raising financially sensible children. It is also very important to let them keep some money aside to do their “fun” things.

The two big S – Savings and Success – needless to say, the essential elements in the scheme of big things. Communicate the importance of savings and investment by using applied methodologies. For example, let them have not one but multiple savings jars – one short term for immediate wishes, medium-term savings jars for planned expenditure, and the last one for the long term, which includes goals-based desires or for emergency and uncertain scenarios. The last jar may be introduced at a later stage when they have a more pragmatic experience in saving. Also, teach them about the early relation between savings and success by narrating exciting stories and sharing motivating anecdotes, so they stay inspired to do just the same. 

Moral, parental and financial values all go hand in hand – being a model parent is no easy feat, but remember not just to teach but also to exhibit patience. Let them learn to wait to get goodies at times and teach them to compromise in some cases too. Try and educate them on the negatives of impulsive buying and how it will impact the structure they have created, however at the same time, let them know it’s alright to cave into yearnings once in a while. Keep them happy by keeping yourself and your family happy too. Do the small things that make you smile – happy parents raise happy kids. Express praise, encouragement, thankfulness, and appreciation when due, it always boosts morale. Display gratitude in dealing with your place in the race of life; this will take them a long way ahead as gratitude truly redefines the way one looks at and handles money. Don’t let them get bogged down with the cumbersome tasks of life; instead, teach them how to convert challenges into opportunities. While schooling on the principal lessons of life, remember to safeguard the innocence of their age and always create an amusing, innovative, and interactive way of learning. 

The art of giving – lessons on generosity can be imparted at a young age. They can always learn to keep aside a portion of their allowance to contribute to a charity/cause. Kindness and compassion taught in this manner generate a real sense of positivity and contentment. 

To sum it up, like most languages, financial literacy is not an easy project to master. But with the right balance and gears in place, we can try and raise kids to enjoy a successful and charged financial future.

Written by:
Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

Published by:

Sheren Susairaj, Marketing Associate – 29k Investment Advisers Pvt. Ltd

Key to Protecting Client Assets: Understanding the Human Nature of Irrational Decisions

Tough times do not last, tough people do. At first, this quote may sound irrelevant to the title given above but, making clients understand that this too shall pass is sometimes difficult. Ask yourself, how many times have you allowed your emotions to rule in critical circumstances? Especially while looking at the current market scenario, the strongest of the investors might feel skeptical if you ask for investment solutions.

It is natural. When it comes to investment decision making, our emotions take over; the reason is human psychology behind it. We feel the pain of a loss to a greater extent compared to experiencing the joy of gaining. If you have observed, the emotional impact of loss is higher than of the equivalent gain – and it is called Prospect Theory or ‘loss-aversion’ theory.


Understand this with a simple example: in a situation, you are receiving $40 as an amount of utility, and in another situation, you gain $80 and then lose $40, so the remaining amount is $40 again. Here, the net gain is $40 but, the second situation disappoints you. According to this Prospect Theory, an investor tends to hold onto a losing stock longer than he should and sells winning stocks sooner than he should.

The fundamental logic would be holding onto winning stocks in order to boost the gains and selling of the losing stock in order to prevent the soaring losses. There is a sufficient number of analytical studies done on investment management. One study shows that when it is about selling winning stocks prematurely, people often settle for a lower guaranteed gain of $50 than a riskier yet higher gain of $500 or nothing. It is a matter of loss and gain or if put aptly, loss, and guaranteed gain.

For any financial adviser, it is essential to understand the human nature of making irrational decisions. It prevents you from being a victim or helps you to save your clients from doing the same. For further explanation, let’s take two quotes from William J. O’Neil’s How to Make Money in Stocks: A winning system in good times and bad.

  1. “A great trader once noted there are only two emotions in the market: hope and fear. The only problem is we hope when we should fear, and we fear when we should hope”. To avoid emotional decisions in investments, one can implement a relative strength system. It is a calculation that happens by the division of security price in routine, and it comes in life by plotting it on PnF (Point and Figure) chart. There is no grey line in the chart, it is either on buy signal or on sell signal. This permits you to construct a relative portfolio conducted in a consistent and sensible manner based on the strength system, which further helps you to make the right decisions. 
  2. “The whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when you’re wrong.” Believe it; psychology often gets in the way of making reasonable decisions in unfavorable times. However, if you succeed in conveying the above quote to your client, you are playing a vital role in their asset management. 

    Furthermore, research by James O’Shaughnessy helps to establish credibility for the process. He tested everything from P/E ratios and price-to-cash flow ratios to market capitalization, profit margins, and relative strength. The research was conducted over a span from 1951 to 1996 where he examined things separately as well as with joint variables. The summary included one common factor in the top 10 performing strategies, and that was relative strength.Daniel Kahneman, a Nobel Prize winner in Economic Science, put an appropriate example in his speech. An investor notices the increase in his portfolio from $1 million to $1.5 million, whereas the other investor sees the fall to $2 million from $3 million. Who is happier? Sometimes, it is imperative for your clients to focus on the guaranteed least loss rather than a riskier gain. If a good strategy is working so far and suddenly shakes, it’s the timing to blame and not the strategy.

Keeping emotions on the check is challenging sometimes or rather often because several factors affect the stock market. It is difficult to spend energy on patience, which brings rational decisions as the brain is coping with multiple challenges. A right adviser uses the best of the knowledge to keep clients safe from loss and assists them in making the right decision in the tough times.

Interested in knowing how to protect your assets? We would love to have a word with you.

Written by:
Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

Published by:

Sheren Susairaj, Marketing Associate – 29k Investment Advisers Pvt. Ltd

COVID-19: Is it the right time to invest?

The novel Corona Virus, or officially termed as COVID-19, is an unfortunate pandemic that is affecting lives and livelihood across the globe. During these testing times, we strongly recommend that everyone stay indoors and contain the spread of this deadly virus.


While the entire globe, especially doctors, medical researchers, and those affected, fight this devastating disease, the markets have responded strongly. As anyone in the financial markets will tell you a moment in time is an eternity when the markets are moving. We’re obviously watching the markets roiled as updates come along. The markets world over have had steep falls similar to that we all witnessed during the 2008 global crises post the fall of Lehman Brothers. As opposed to the 2008 meltdown, which was predominantly due to credit negligence by financial institutions, the severity of the current market reaction is justified as businesses across the globe have just hit pause. There is a fear among the masses that have, in turn, led to a cessation in the movement of people; stores have no footfall, malls, restaurants, and cafes are shut, manufacturing and production in China and everywhere else has stopped. Businesses and hence the markets have gone south.

However, here’s the good news. While all markets across the globe have been down in hell the last couple of weeks, the Chinese stock market is trending in green. The reason behind this silent rise is due to the fact that the number of new COVID-19 cases in China is on a steady decline. China has now closed down the makeshift hospitals and has been successful in drastically reducing the spread of the disease.

With a focus in the financial and commodity markets, the keys to maintaining balance is to stay informed. Watching currency markets are as important as covering import and exports of commodities. There is no way to predict such a ‘black swan’ event, but we can compare prior markets as they make their way through these critical anomalies. As everything in this world is a new news event, everything follows a cycle that is familiar.

The rest of the world will follow suit. There is HOPE. As people and businesses spring back to life the markets will react positively as the world recovers from yet another slump. We know that this is the time to get greedy. We have seen the dot com bubble, have witnessed the 2008 meltdown and know for a fact that this a golden opportunity to invest. To invest in strong businesses and take advantage of this volatility. This short term slump is not just due to slowing business but also a strong negative sentiment and negative momentum. Good businesses are up for grabs at a lower price.

Although we understand that there may be further downturns in the market before it hits rock bottom, we would advise investing intermittently rather than a lump-sum investment. Yes, we believe that this is the right time to invest. When everyone else flees, we choose the right businesses to invest in and thus helping our client make the most out of their investments.

Hopefully, in a few months, we would be looking back at the Corona Virus pandemic and think about the losses in terms of life. While the markets shook, we would also marvel on how it stood resilient, even in tough times. We can never be sure of what impact it can have on the economy, fear is real, but it can be exaggerated compared to reality.

To conclude with Abraham Lincoln’s famous words: “This too shall pass!”

Interested in knowing more about how to plan your finances? We would love to have a word with you.

Written & Published by:
Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

Sheren Susairaj, Marketing Associate – 29k Investment Advisers Pvt. Ltd

2020 – What The Markets Have in Store

shutterstock_15040218892019 seemed to be a trying year for investors with the trade wars between the largest economic powers, continued uncertainty over Brexit and fear of general economic uncertainty. However looking back at the market performance in almost every sector – equity, bond markets, and currencies – 2019 was a good year for investors. The US equity markets alone posted an average gain of over 28% over the last year, a far cry from the dismal performance of 2018. These gains can be largely attributed to the policy shift by the central banks, especially the Federal Reserve. Furthermore, as the year drew to a close, the US and China finally seemed to have come to an agreement on their trade terms, providing the markets with some temporary stability. But, what are the markets expecting in the year ahead?

Most analysts and financial institutions are not expecting the same level of growth to continue in 2020. A survey of the largest financial institutions globally shows that while most agree that global recession will not be a concern in 2020, the growth in the markets may not continue at the same pace as it did in the previous year. The economic risk will continue to remain a concern for most along with the expected repercussions of the prolonged US-China trade war, as well as the general consensus that the Dollar will weaken. Analysts also expect monetary policy easing in the emerging markets to continue. In Europe, the focus is expected to remain on monetary policy easing by the ECB as well as economic data out of Europe’s largest economies.

What should investors do?

Over the coming year, most financial institutions are recommending that investors should focus on rebalancing their portfolios as riskier assets are more likely to perform well this year. Investors should look to make the most of opportunities instead of focusing on certain asset classes or regions. Equities, in general, are expected to out-perform other asset classes this year along with REITs and corporate bonds. The weakening Dollar would also provide an opportunity for Emerging Markets to recover and perform well. Emerging market currencies such as the Indian Rupee, Ruble and Mexican Peso are likely to yield positive returns.

Analysts and Investors will be looking forward to a few key points during the year. The US Presidential elections due to be held in November will drive market expectations on trade, taxation policies and even interest rates with mounting pressure on the Federal Reserve by the current President. Markets will also look forward to policy announcements by major central banks as markets expect a pause in rate changes by the Federal Reserve, at least for the first half of 2020. Finally, despite the end of year agreement between the US and China with phase one of the deal, the risk due to trade war remains. Trade disruptions between the US and Europe are also likely to continue, with the US expected to levy new tariffs on food, industrial product and luxury clothes on the European Union.

Written By,

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Aishani Tawakley, CFA

29k Group

Emotions in a Stressed Economy – 3 Insights

“If investing is entertaining, if you’re having fun, you’re probably not making any money.

Good investing is boring.”

-George Soros


The decline in global growth and recession worry investors; however, many success stories have come up by those who bravely invested in 2008 to create a fortune for themselves in the past decade. New and retail investors are losing confidence in the market after investing in the past couple of years. Here are 3 Insights into the market that one needs to look into to understand the global economy slow down.

Indian Market: The last two quarters were alarming for investors to see the decline in growth and earnings

Economists believe that the current slowdown in India is a combination of cyclical and structural issues and will take time to fade away. The Government at the moment is closely monitoring all NBFCs along with the RBI to weed out all weaknesses in this sector and monitor its growth.

Though FY19 welcomed the economic reforms, it failed to support several sectors. The sale of automobiles dropped; the most prominent sign was when the country’s largest car manufacturer – Maruti cut down 50% of its production and laid off over 3000 contractual employees. Tata Motors and Mahindra and Mahindra have also halted production and shut down plants for several days. In the FMCG sector, HUL has experienced a drop in its growth figures. Meanwhile, companies such as Patanjali have witnessed a decline in their dealerships; they have even reduced their marketing expenses to bring down their total overhead costs. The root cause of this could be the reduction of the purchasing power of the consumer in the rural market.

Global Growth Worry: US-China trade war leading markets to recession talks

US long-term bond yield has dropped below short-term yield, thereby indicating a depositphotos_49816769-stock-photo-stressed-girl-upset-with-badpossible recession soon. The trade war between the US and China and President Trump’s disagreement with the Fed has led to increased doubt over economic growth. This uncertainty has pushed investors towards safe-haven assets (Gold). Trump’s tweets have not helped the case either; the markets have swung, discounting the few positive news in the economy. Traders are confused and fail to understand the signal and direction of the market.

Hone Yourself with Market Trends

Emotions play a vital role in staying invested in the market cycle. The Sensex has been alive for 38 years, 28 of which have been positive growth years. Staying invested during the market cycle will fetch maximum yield in equity markets.

In recent times, India, being a land of entrepreneurs, has started generating more jobs, whereas big businesses and corporations are laying off employees to reduce the cost and production. This situation has opened new opportunities to invest in small and mid-cap funds, which are under-invested during the past 2-3 years. However, small scale businesses are still trying to recover from the effects of the credit crunch faced during Demonetisation.

Research houses suggest that the current slowdown is similar to what happened during the year 1998; several indicators draws a parallel between the two periods. Slow down can come from different areas of business and trade. Banks & regulators, today, are more alert as compared to 2008. All we should do now is to pick the correct stock and investment instrument which can produce maximum return once the economy gets back to a healthy condition. Right now is the time to put on the seat belts and not worry about things are beyond our control.

It is crucial to make sure to have an attitude to stay invested in the market to achieve your financial goals, rather than letting the emotions swing along with the market. Getting adequate knowledge from the right source is very important. Choose a financial advisor who understands the risk profile while keeping in mind the age and thus and advise you accordingly. Trust the advisor to provide the right attitude to stay in the stressed market.

Nobody can time the market, so, protect your portfolio through SIPs, diversification in US-based ETF, investing in structured products, and hedging your positions in trading. If you have chosen your portfolio to get high returns, you should also be able to bear the volatility. In case there is any aversion towards taking such risks; it is suggested that the portfolio might need a change from the highly leveraged instruments. This, however, should be done after making a little recovery instead of selling them at a substantial loss. Testing times like these remind us to keep nearly 60% of the net worth into liquid able assets (No Lock-in). Exiting the market at the wrong time is not the solution; seeking advice from a genuine Financial Advisor for the right approach to sustain through the rough seas of investing.

Written By,


Lavanya Kumardev

3 Steps on How to Invest in Your 20s

The 20s – An age where you are fresh out of college, all set to start a new journey with your first full-time jobs, internships, etc. Where you are driven and waiting to bask in the glory of learning something new.

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From a finance perspective, the 20s is also an age where there is a sudden shift in your purchasing power from pocket money/stipend to now your salary. You cannot wait for that wishlist on the shopping sites to become real purchases. The other side of the coin is your savings, equally important. Know your priorities and disciplining is irreplaceable here. Planting that seed in your mind to save and invest, is the very first step. Well, there is always a start but what next!

Here are three steps as to how you can invest in your 20s: 3 Steps on how to invest in your 20s

Check out our Youtube channel and Subscribe for more videos: 29k Group!

Written & Published by:
Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

Shweta Gaba, Consultant – 29k Investment Advisers Pvt. Ltd.

Money Management for Millennials!

#Millennial #financiallife #yo

Sounds familiar? The Millennial language it is!

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Millennials are confused about their money quite often. The #YOLO concept i.e. You Only Live Once clearly makes them spend more today and save less for the tomorrow. Irrespective of your profession, current situations, uncertainty on future goals, etc. MONEY MANAGEMENT is a MUST!

Credit cards, savings, budgeting, where to invest, etc so many questions already?

Millennials are the fuel to social media! Watch this while you are busy staring at your smartphone. Channelise the time to something more useful: 3 Rules on Money Management for Millennials!

Also, millennial lingo #likesharesubscribe

For more videos on money management, click here: 29k Group

Written & Published by:
Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

Shweta Gaba, Consultant – 29k Investment Advisers Pvt. Ltd.

3 Tips to discipline your child on Wealth and Success!

We all encourage music, sports, etc in early childhood, then why not the same attitude with investments? It is indeed a necessity and not just a choice today to inculcate these seeds of wealth and success. It need not be just quoting or reading from books which are way beyond your little one’s comprehension but rather explaining it to them in a simpler manner. Bedtime stories can be productive!

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Practice what you preach is even more relevant because remember your child is constantly watching what you do and learns best that way. So remember, teaching them what’s right requires you to learn it first!

Peppa Pig is undoubtedly every child’s (well, mostly) favourite but what about the ‘Piggy Bank.’ This has always been modified by the technology boom.

Watch this video for more:

For more videos on financial literacy, click on Financial Education and Awareness – YouTube.

Written & Published by:
Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

Shweta Gaba, Consultant – 29k Investment Advisers Pvt. Ltd.

6 Tips in 4 weeks to Attract Wealth and Success

“What you do speaks so loudly that I cannot hear what you say.” – Ralph Waldo Emerson


You have read everything inspirational/motivational you can lay your hands on. But, all of this knowledge if not channelised into action is like fertile soil lying unused.

You need to have your road map simple, crisp and precise. And most importantly action upon the same. Your first course of action: WATCH OUR VIDEO: “6 Tips in 4 weeks to Attract Wealth and Success

No, this is not a magic potion or shortcuts, but definitely the catalyst you have been looking for.

Best of luck!

Written & Published by:
Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

Shweta Gaba, Consultant – 29k Investment Advisers Pvt. Ltd.

10 Point Checklist on How to choose a Financial Advisor!

Need financial peace?


When it comes to a big purchase, we analyse the situation thoroughly. For example, if you need to buy a phone, you make sure it fits your needs, check on durability, features, you get the best deal possible, etc.

When you plan a vacation, you try to maximise your choices to get the best deal possible without compromising on quality.

What about the basis of all your expenses? The FOUNDATION of all of this is simple: MONEY.

Don’t you think you need an expert on the same to guide you? Choosing the right financial advisor makes a tremendous impact on your present and future finances. CHOOSE WISELY. BUT HOW?

Like Rumi rightly says, ‘what you seek is seeking you‘.


Written & Published by:
Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

Shweta Gaba, Consultant – 29k Investment Advisers Pvt. Ltd.