Was it only a decade ago that Apple was just a red fruit? That Blue & tooth were, well, a colour & dentition and reality TV were shows, that families watched together and not in personalized Netflix accounts? The thing with these gradual lifestyle changes is that you don’t always notice when they’re happening – Kind of like a child growing.
Financial planning is also one such thing! Wondering why and how are kids involved in this? Well, read on. A costly lifestyle is what the future holds. This calls for a super smart balancing of our income and expenses.
As parents, it boils down to us to make the lives of our little ones easy while ensuring they are prepared for the future. Financial literacy often neglected, as its believed to be the learning of the elderly and matured.It deals with knowledge and skills centric around effective money management decisions.
Money is a tricky topic, and like many others, kids to hear it all. However, parents do not consider engaging them in financial topics, believing there’s enough and more time for it! For example, your child might hear a classmate say that rich people are lucky. If your child believes that wealth is a result of luck, what motivation will he or she have to handle money responsibly? It is important to clarify that most people work hard and make smart choices to get rich.
The concept of the small home-built banks is quite old. Remember the colourful mud or steel made piggy banks with a tiny hole to push in your money? It not only helped to discover the relationship between earnings and the spent but also inculcated the habit of saving a few cents. Piggy Banks helped to learn the value of money besides being thrilled with the small purchases made in the young days. Further, financial learning was imbibed when government banks introduced savings accounts for children, though it was in the name of the parent. This not only gave kids the feeling of being an integral part of the family but also learn the techniques of the chequebook and account for your personal budget – an ideal teaching method for our kids of today!
While we have enjoyed our small savings and cash transactions, it is important to have our kids enjoy the same, though in a smarter way, given the multitude of options available for the smart generation. Let kids participate in a cash transaction with the mall lady, even if it has you hang around a little extra in the store while your kid painstakingly counts out the coins from the piggy bank!
Financial literacy for kids is about ensuring that your child is educated on the best way to manage finances. This will allow them to learn how to manage money in all ways possible besides making wise money decisions.
The golden days of Monopoly board games were to ensure that kids learnt about making money, spending and saving! There are games online these days that will increase the knowledge on how to handle cash. They make lessons on money management to children easy and fun to learn. An easy way would be to start enrolling your kids in finance Olympiads, which opens them to various money lessons in a quick and interesting way. Participate in Junior Finance Wiz on Edyoo.com to cultivate an analytical thinking in children in terms of financial knowledge.
Financial literacy for kids is important as it prepares the toddler for a bright financial prospect. It is the duty of every parent to make sure that their children have adequate knowledge of cash matters. Good monetary literacy will help your child to have a good understanding and awareness of cash.