Let kids play with money

  • admin@kashmirink.com
  • Publish Date: Jul 8 2019 3:31AM
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  • Updated Date: Jul 8 2019 3:31AM
Let kids play with moneyRepresentational Pic

Parenting is not a child’s play. It’s loaded with extraordinary responsibilities for the kind of conflict our place (J&K) is enveloped in. Leaving political dimensions of the conflict aside, let’s have a close look at consistent financial support as lifeline in parenting. 

Here the parents need to secure future of their children amid spike in cost of living - cost of maintaining a certain standard of living. All is not going to be well on inflation front and the rising cost of living needs a serious attention from one and all, especially in parenting. 

In the contemporary times, the big question mark is on the future of our kids amid rising cost of living? It was totally a different ball game when our parents used to think about investing for our future. It has changed with the times. The future of our kids is an expensive affair. So, the circumstances demand careful money management and imparting financial lessons to children right from the incipient  stage of life is inevitable.

Even as today’s parents are well educated, few know where to start from when it comes to teaching their children the value of money. It’s a common observation that children do not value the things they are given and their demands keep on increasing. Here the best strategy is to tutor the kid over caring for money and this way the parents would be preparing them to be on their own in future. Making them understand the value for money will teach them the value for small things and at the same time would be inculcating things like satisfaction, patience,understanding and responsibility in them.

Parents have to capitalize on the fact that from the time children are born till they attain adulthood, they are in the constant process of learning. So, children are excellent learners. Every parent understands it well that if the children are given good education and proper guidance, they can develop into prudent adults. But not many parents focus on imparting financial education to their kids. They generally postpone it till their children start earning.

In our childhood, our elders would not talk about money or an financial panning in our presence as kids. It was considered as a grave indiscipline if any child would talk about money. I am sure many of our age were unaware about the importance of saving and investing even after many years into adulthood. This lack of financial education in childhood might have developed deep-rooted bad financial habits proving an impediment to smooth progress for the rest of life.

Amid all this strictness in money matters, I am reminded of money box or coin box, which is an inseparable part of our childhood memories. It used to be a treasure for us, as our parents used to inculcate saving discipline in us. Opening or breaking this box when it was full or sometimes half full helped us realize the benefits of saving. 

But, today we as parents cannot afford to leave our children without money management skills when financial inclusion is sweeping populations segments across the  country. I am sure, in the times ahead, it would be compulsory for every citizen irrespective of age and gender to have a bank account. So why not you as a parent start your child’s financial education. 

Today money boxes are still around us. Encourage your kid to put money regularly in the box. Most likely, your child is going to be amazed once he finds lot of money accumulated in the money box. This would be his first lesson on systematic investing. As your child grows, introduce him to other modern ways of saving money. Let the child be exposed to banking. Banks have saving schemes in place which can be used to start imparting knowledge about money matters among kids and start with educating your child about saving. The idea of systematic investing remains same here.  

Precisely, since the habit of saving forms the backbone of the wealth creation, then why not expose children to financial products where they can save and lay the foundation of wealth creation for themselves. The first step to start saving for your new born should be to open a savings bank account or a recurring account. Relatives and friends invariably bring gifts for the new born, including cash etc. It is best to make use of these gifts. The gift cash should be immediately parked in the account.

When your kid is mature enough, link his pocket money to a savings bank account. Expose your child to debit card and make him understand about the working of a debit card. And don’t forget to explain him the concept of credit card. Parents should be cautious while exposing the kid to credit card. Since banking transactions are now purely technology driven, it is good to expose your kid to the latest technology and payment modes, such as mobile banking. And don’t forget to monitor the spending habits of your child. A predetermined spending limit would ensure that the child does not go overboard. 

Precisely, it is never too early for kids to learn how to handle money. In order to teach your child the value of saving, you can’t cave in to “I want that!” demands on the spot. Instead, offer a gentle reminder to the kid that the money is growing back home in his money box or in his bank account and soon he can buy things of his choice with his own money.

So teach your children the value of money. It is up to you to see your kids reach adulthood prepared to face life’s fiscal challenges. In the short term, they may develop strong saving habits, learn how to make smart purchases, and begin to understand the true meaning of investment. In the long term, they can be helped to avoid accumulating debt. And by teaching the value of saving for the future, you as a parent can help them plan for financial security.

It’s not bad to introduce your child to the stock market  at an appropriate age. Tell the child about various modes of investing in it and how wealth can be built  by systematically investing in a quality equity fund. Don’t hesitate to talk about failures and blood baths witnessed in the market. This will help the child to understand the risk element in investing in stock market.

To conclude, let me tell you that an ideal time to begin teaching your children about the basics of money is when they first begin to notice it. So do not forget to keep your kids fiscally fit. Money is a great way to teach children about decision-making and a whole lot of prosocial skills.