Why there is a growing need to fill the gap in financial literacy among young children and how it can be done.
Indian families love to talk about values, culture, mythology and good habits with children. Ask them to discuss money and the general response is that children are too young to understand the complexities of money, spending and investment. However, parents must first reiterate the fact that age is not a barrier to learning financial literacy.
Young children need financial literacy.
Parents make sure that their children learn swimming, cycling and other skills that are considered essential in this day and age. What they forget is that financial literacy skills are also an invaluable life skill that is often overlooked. Children are taught good social habits. Good money habits are no different.
Just as building strong moral values lays the foundation for a bright future, a strong appreciation of money from an early age lays the foundation for a responsible adult. Today’s children are smart, well-informed and aware of the latest trends in toys, video games, entertainment and fashion. However, they are unable to differentiate between their needs and wants. Parents also indulge their children’s every wish. This often sets a precedent where children fail to appreciate the value of their parents’ hard-earned money. Parents need to understand that life is all about choice and at some point, the child needs to make independent choices. Most of our choices involve different aspects of money. A Money Smart child is more likely to be crushed by a mount loan due to a wrong choice. There is no doubt that there is a growing need for kids to be smart.
Teach them money skills at an early age and watch your kids turn into prudent investors who double up as conscientious consumers. Today young children need to be taught the power of saving. They need to be told that one has to work to make money. They need to realize their compound strength. They should be taught different ways of investing as they get older. Parents should think about their child’s financial knowledge. They should realize that money plays an important role in a person’s overall well-being and leads to a fulfilling life.
Learning is a lifelong process and simply put, as children develop the ability to make better financial decisions as adults, they are better equipped to manage money and debt and are in a better position to achieve their financial dreams and life goals.
Filling the gap in financial literacy among young children.
All of this may sound overwhelming. You may not be old enough to understand your child’s financial obligations, but there is nothing that can stop you from discovering the power of savings through Piggy Bank.
You can teach your kids to keep a budget by asking them to record their expenses in their notebooks. You can take your kids to your local bank and experience their banking ecosystem. Take them with you when you go shopping for groceries and let them learn the concepts of value, money, currency and value. We are actually looking at the limitless possibilities here.
Parents can engage their children productively and spend quality time with them through a number of innovative DIY activities. Countless ideas are available online.
Where there is desire, there is certainly distance. In life, some are wise and some are otherwise. One of the reasons for this is prudent money management skills. Now is the time for parents to realize this and take the right steps to create a bright future for their children. Talk to your kids about money and watch them grow. Financial literacy is a skill that can be learned and mastered through practice. Kids are not too young to learn. It is never too late to start learning.