Even if you live miles away from your parents, your responsibilities don’t end, especially when it comes to safeguarding their health, both physical and financial. Increasingly, adult children are stepping into the role of financial bodyguards for their parents. In a digital-first world, their money is more vulnerable than ever to fraud while unscrupulous relationship managers and salespersons lurk around every corner, pushing products that extract more value than they deliver.
These stories are no longer uncommon. Adult children, often more financially savvy and better equipped to navigate the modern financial system, are stepping in to protect their parents from digital fraud. But their role goes well beyond helping parents use apps or avoid scams. It also involves ensuring their money is invested wisely and not left to erode in instruments that don’t even beat inflation. But, there's another, more delicate responsibility they must navigate: succession planning. From gently nudging parents to write a will to cleaning up long-standing financial clutter, children are walking a fine line of helping parents without making them feel disempowered or out of control. This story explores that balancing act.
Shipra Singh speaks to families to understand how adult children, even when living far away, are managing their parents’ finances and navigating this complex yet deeply personal role to secure their parents’ financial future.
But being digitally savvy doesn’t automatically translate into financial prudence. One clear example is the growing tendency to use artificial intelligence as a stand-in for a financial advisor. If you rely on an AI chatbot for investment advice, ask yourself this: Would you trust it with medical advice?
As with other aspects of life, AI can be a powerful tool in finance helping you understand concepts, compare options and narrow down choices. But what feels helpful can quickly become risky if you begin treating it as your investment advisor.
That’s because AI lacks personal context. Ask it for the “best” mutual fund, and the response may reflect market visibility rather than your individual needs, especially as companies increasingly optimise their products to rank higher in AI-generated answers. Read this insightful story by Avneet Kaur on why AI can be a friend and teacher but not a guide when it comes to money decisions.
From the Mint Money stable this week is another must-read that captures a growing trend among the young workforce: working two jobs. This isn’t the traditional notion of moonlighting done in secrecy or in violation of employment contracts. Instead, it’s the rise of the side hustle: often unrelated to one’s primary job and driven by the desire to upskill, pursue passions, and earn additional income.
Popular among Gen Z and millennials, side hustling is also fuelled by concerns around income security, the impact of AI and relentless news of layoffs in a fast changing job market. Ann Jacob brings together compelling stories of young professionals who are building parallel income streams and examines how companies are reshaping employment contracts to accommodate this shift. The story also highlights what individuals need to be mindful of when side-hustling, and that is to stay disciplined with money management and not go overboard and inflate expenses with extra income.
And it’s not just about working extra for that extra income; first-time earners are also entering an increasingly unpredictable workplace, and that’s leading them to develop some smart money habits early on. Anagh Pal spoke to two such first-time earners who are prioritizing savings and insurance over lifestyle creep. The story is a must-read for young earners to build smart money habits early on.
And finally read this important story by Shipra Singh that tells you why assuming an NRI status does not automatically exempt you from paying taxes in India, this has become increasingly clear from recent rulings. The Income Tax Appellate Tribunal denied non-resident status to Binny Bansal, co-founder of Flipkart, for FY20, the year he sold shares in India and earned substantial capital gains, meaning he could not claim tax benefits under the India-Singapore tax treaty.
The broader lesson is that the tax department is now scrutinising cases more closely, looking for real economic and personal presence abroad, rather than just technical non-resident criteria.
In Mint Money interviews this week, Ann Jacob talks to Anup Upadhyay, flexi cap fund manager at SBI Mutual Fund who explains why flexi caps should be a part of every investor's core portfolio. He also shares his stock-picking strategy and sectoral bets along with structural changes to SBI's flexi cap fund.
Until next week!