- close
01/6Teaching financial literacy to children
Shop Similar Look
Financial decisions have a profound impact on our lives and imparting financial literacy to our children is nothing short of an essential life skill. However, the task of teaching kids about money can be challenging. How can we make financial education engaging and relatable for our little ones? The key lies in fostering a positive relationship between children and money from an early age.
02/6Explain financial value
Shop Similar Look
One powerful way to instill the concept of financial value in children is by ascribing a value to something they love. Just as I cherished my beloved Vada Pav, my father used it as a clever tool to teach me about the value of money. He would ask me questions like, "If you need something that costs 10 times more than a Vada Pav, will it bring you 10 times more happiness?" This simple comparison helped me understand the relative worth of different expenditures.
03/6Basics of savings and compounding
Shop Similar Look
Another valuable lesson parents can impart is the power of saving and compounding. Many of us give our children a set pocket money and encourage them to save for special purchases. However, take it a step further by introducing the concept of compounding. Offer to match a percentage of their savings each week, showing them how their money can grow exponentially over time. For instance, if you give your child 10 Rupees and promise a 10% increase each week, they will witness how 11 Rupees can become 24 in just a few weeks. This visual representation of compounding can be a game-changer in teaching them about the benefits of saving and investing.
04/6Responsible storage of money
Shop Similar Look
Ashdin Doctor, habit coach and author “The Book of Good Habits For Kids” says, “Teaching children responsibility for their money is crucial. Discuss with them where they plan to keep their money safe. This could be a piggy bank, a savings account, or a similar secure location. Understanding the importance of safeguarding their finances is a fundamental aspect of financial literacy.”
05/6The value of earned money
Shop Similar Look
To further broaden their financial horizons, encourage your kids to explore the concept of earning money. Simple tasks like washing cars or helping with household chores can serve as a foundation for their understanding that money comes from hard work and effort. This early exposure can reshape their relationship with money, emphasizing the importance of earning and saving.
06/6Nurturing an abundance mindset
Shop Similar Look
Parents often use phrases like "Money doesn't grow on trees" to instill the idea that resources are limited. However, this can inadvertently foster a scarcity mindset in children, leading them to believe that there will never be enough money. Instead, encourage an abundance mindset. Teach them that there is enough money for everything they want, but they must prioritize their desires. This shift in perspective can empower children to make thoughtful financial decisions and set realistic financial goals. Teaching financial literacy to children is an invaluable gift that parents can provide. As parents, it is our responsibility to equip our children with the knowledge and skills they need to navigate the complex world of finance confidently. After all, financial literacy is not just about money; it's about securing a brighter future for our children.
End of Story
TRENDING ARTICLES
Breathing exercises to boost lung health
Common coverup tattoo mistakes and how to avoid
Mustard seeds vs. poppy seeds: Which is healthier
Are you lucky in love or have commitment issues?
Ambani ladies in stunning Manish Malhotra saris
How daily bathing is medicinal
How to eat dry fruits for weight loss (It's not just by soaking them)
9 benefits of consuming garlic before lunch
Visual Stories
Right arrow
Entertainment
Bollywood actors who refused to feature on Karan Johar’s talk show
Life Style
Vertical garden ideas to turn your balcony into a cosy haven
Recipes
How Indian states turn leftovers into comfort food
Entertainment
Janhvi Kapoor's blue blazer & velvet bellbottoms is master class in nailing corporate look
Life Style
10 facts one should know about pigeons
Entertainment
Hansika Motwani dazzles in her golden yellow lehanga
Travel
8 most surreal beaches on Earth
Entertainment
Sonam Bajwa's Surreal Saree and Lehenga Collection
Life Style
World Tiger Day 2024: 10 interesting facts about terrific tigers kids must know
Life Style
National Lipstick Day: Best lipsticks every Indian woman should have in her collection