As a parent we strive to do what’s best for our children. This means that we also have to train them to manage money on their own, both for now and for the future as well. Unfortunately, most conventional curriculum does not make room for such topics as they are perceived to be heavy on the kids.
But this perception cannot be more wrong. Imparting a working knowledge of money should be done by every parent. Although your child may be introduced to some finance course at the later stages of their education, it is imperative that you also shape their values regarding money from a very young age.
To equip your children with healthy financial management practices, we have compiled a list of 5 fun ways which can help you do so,
1. Through informative videos
Not all children may be interested to learn about money at first. To make things engaging for them, explore informative videos online. These videos help your child gain financial knowledge and are also very easy to understand for all age groups. What’s even better is that they are super fun and keep your child engrossed and curious to know more.
2. Go on a shopping trip with them
We are sure most of your kids tag along with you on weekly grocery shopping trips, but how many of them are actually interested to know how ‘buying’ works and how money is involved in it? A shopping trip is a great way to acquaint your kids with money. Ask them to observe the price tags on different items and show them how you are paying for the items in your cart. This helps them understand the value of money and why it is important to only purchase the things you need.
3. Introduce allowances
Allowances are a great way to introduce money to your kids. Ask them to allocate 3 separate jars and label them as ‘Spend’, ‘Give’ and ‘Save’. Fix a date every month and tell them that they will be getting their allotted pocket money only on that day. Along with learning the importance of spending and saving money, you will be able to teach them the noble art of donating to the less fortunate.
Nowadays a lot of tools have come up that can aid your child on their path toward financial freedom. One such reliable tool is RBI’s Financial Education Initiative. RBI aims to promote awareness on key financial topics every year through this focused campaign. It is a secure way for both parents and kids to stay updated with all money matters.
Many parents don’t realise it but, a simple trip to your local bank can garner a lot of interest in your child toward learning about money. Watching you interact with the bank staff and drawing money magically from the ATM can be the key to teaching your child how to be financially independent in the future.
It is rightly said that, 'The easiest way to teach children the value of money is to borrow some from them.' How do you teach your child to manage money?
Hope we were able to give some insight on how to financially educate yourself and your child, if you haven't already. Feel free to write to us with your thoughts.