The more time you give to your children, the better they grow;
The more time you give to your Money, the better they grow.
- Open a Savings A/c on your child’s name. Guide him how to save money he receives on birthday or any other occasion in his savings account.
- Make him understand the difference between Saving & Investing.
- Don’t take your child along with you in ATM to withdraw money as they might mistaken that they will get money whenever required.
- Make them understand the educational expenses you are paying on monthly or early basis.
- Ask them to write / maintain the monthly household expenses book.
- Invite them to hear the financial discussions, they cannot express their views but can logically think on it.
- Make them understand why the loans has been taken for Home, Car or Education, the breakup of EMI’s, Prinicipal & Interest.
- Visit an orphanage & donate some with your child through which he will understand the things he uses are not available to them.
- You have started the Journey of becoming a Smart Investor, its your duty to train your child to become a smart investor by teaching him about financial literacy, products like mutual funds, stocks etc.
Financial Literacy is need of the hour, moreover staying happy in any situation & changing the view towards Money is required.
Happy Children’s Day
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Changing times, social media like facebook, instagram, whatsapp has impression on kids.
Learn how to teach them money lessons.
Money lesson for your kid aged 15-16:
Explain loans & credit reports before the bad habits of his peers get ingrained in him. Ensure he understands the importance of high credit score to eventually get the loans for things he wants, e.g. a house or a car in future. Make him understand how loans work — principal, interest, repayment, good loans Vs bad loans, tax benefits (80C, 80E etc), Insurance cover for loans etc.
Money lesson for your kid aged 17-18:
Give them more leeway in Bank A/c where they can store the money & write cheques. Don’t add money to this account. They should fund it from their savings. Have them write cheques for costs like student activity fees, and sit down with them monthly to balance account. Also, discuss topics like work-life balance, financial freedom etc.
Money is great, but it’s worthless if you’re not leading a balanced life.
Why Money Lessons are important for your kid in changing markets.
Money lesson for your kid aged 11:
Keep pointing out advertisements of different brands to your kid. Explain how they try to manipulate consumer’s emotions by making their products look cool through paid advertisements.
Money lesson for your kid aged 12:
While shopping, point out a cheaply-made product & a higher quality alternative, explain the difference (the feel of fabric, brand etc.) and how to choose between the two. If you buy eco-friendly product, explain why you’re willing to spend more on it. She should learn smart purchases rather than just the cheapest.
Money lesson for your kid aged 13:
Get in the habit of clarifying financial concepts. Tell your kid, ‘I invest in Mutual funds, Bonds, Stock Market etc to make money grow’. Show the ups & downs of Nifty (just call it ‘the market’) and explain why people invest in it.
Money lesson for your kid aged 14:
Make your teen work for extra allowance, e.g. chopping vegetables etc. Let her feel the power & freedom of making & spending money. E.g. if she wants a Rs 1200 jacket, explain that she’d have to babysit for 12 hours at Rs 100 per hour to afford it. Convey that she has to work in order to get what she wants.
Money lesson for your kid aged 7:
Talk to your child about career & money. Try to instill positive feelings towards work. Explain what you do at work, why you chose that field and why you like it. Convey that people should try to choose the jobs based on what they enjoy.
Money lesson for your kid aged 8:
Explain that some money that you earn have to be spent on the bills. Let your child sit next to you while you make the payments. Some amounts like rent or EMI — will be too big for her, but you can ask her to match the balances. Focus on Savings too.
Money lesson for your kid aged 9:
Open a Minor Savings A/c. Don’t let him withdraw money at will — if he wants to save for a bike, he should talk to you first. Tell him that he will have to make regular deposits to the bank, monthly or quarterly.
Money lesson for your kid aged 10:
Inform about different kinds of cards & Bank A/Cs. Take your cards out of your wallet and explain which one is for debit, which is for credit, their differences, and the importance of always paying back dues in full & on time.