Why it’s Important to Teach Your Kids About Money…!!
Children love to put money in piggy banks. It’s one of their favourite pastimes. It is one of their earliest interactions with money. They do understand the importance of money, but to a limited scale. More so, we also never teach them about the importance of saving and investing. One of the general notions among Indian parents is that it’s better to focus on traditional education rather than financial literacy. More so, our school system too focuses on basics on reading, writing, and arithmetic. Schools avoid almost any instruction about money. There is neither any elective class to teach about the importance of money. More so, the information and behaviour pick up by kids at young helps in building personality. A lack of financial information and literacy makes a person poor with regards to managing and making money. From the moment of birth, a child starts developing behavioral habits to their adolescent age. Those habits at the adolescent age stay for a lifetime. So, it’s quite important to teach some investing tips to kids:
Teach them the value of money:
Children are great observers. They follow their elders. In order to teach them about the value of money, first let them develop a saving habit. The piggy bank will be a great idea. Gift them a piggy bank. Drop a penny in a piggy bank each day and give a penny to children to drop it. It will help in developing a habit of saving money. When you use a piggy bank, they will see the money growing and understand its importance.
Teach the importance of money through bedtime stories:
Children love listening to stories. It’s quite good to tell bedtime stories about money. It’s better if you tell one’s personal investing stories. What you have gained and what you lose. These will help your children become smart decision-makers in the future.
Engage in practical activity or visit any financial institutions.
If your kids are between 4 to 6 years, then it will be better to play some money games online. Take them to banks and ATMs, which will help in maintaining the curiosity about money.
Know your Children learning styles:
Never force your learning to the children. On the contrary, try to understand his/her learning styles. For instance, if your children understand through visual images, then it’s not good to talk to them through conservation. Just look at the interest of the child and mode through which he/she easily understands.
Show them the importance of giving:
Apart from saving and investing, it is also equally important to develop the habit of giving. It will help them in maintaining a balance of earning, saving and giving. As these habits make your children good with money, but also a good human being.
The socio-economic placement will also impact on the challenges and opportunities affecting the child’s future finances. It’s quite important to provide a better environment for our children.
*Disclaimer: investment in securities market are subject to market risks, read all the related documents carefully before investing