How often have you hesitated to say ‘No” to your kid while shopping – just to avoid a tantrum? Have you tried having a talk about the bulls and bears with your teenager? In these times when even youngsters are targeted by banks and financial institutions, parents can do a lot to educate their children about money. The twenty-first century has seen a burst in economic growth world wide. Information available at the click of a finger, higher purchasing powers and companies vying with one another to offer variety of commodities and services at unbelievable deals leaves even adult consumers confused. How do kids fare in this scenario? Welcome to the thoughts shared by millions of parents world wide. As a parent, you want nothing but the best for your child. Kids today are highly street-savvy and tech-savvy, up-to-date with fashion and information. But are they finance-savvy? The turn of the century saw ads targeted at kids changing from just milk drinks and noodles to banks and financial institutions vying with one another offering saving and investment opportunities to anyone from babies in nappies to teenagers. Educating children and teenagers about income, expense, saving, spending, credit and investments has now become an essential challenge. While the right age to start educating your child about money is arguable, what is not under debate is that every youngster must learn about money. Financial literacy enables your child to appreciate what s/he has in terms of possessions and education. Children develop a sense of respect for the reasons due to which certain things are possible and others not. However, take care not to overwhelm your children with money worries or foist too much “learning” on them. Here are some simple dos and the don’ts to develop ‘money sense’ in your child: Dos -
Talk to children about money.
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Educate your child on banks and banking.
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Involve your child in home accounting.
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Allow them to shop for small necessities.
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Help with decision-making.
Don’ts -
Force your ideas and habits onto your child.
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Make large sums available to your child.
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Fight about money in your child’s presence.
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Wait for attainment of milestones to begin saving.
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Attempt to ape neighbors and friends.
Would investing in your child’s future early and educating them on finance as they mature make them money savvy? Tell us what you think are the implications of discussing personal financial planning and strategies with your child You may also be interested in : |
