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Empower children with knowledge on money matters from the very beginning


Empower children with knowledge on money matters
Money is an indispensable creation that everybody requires in order to meet their basic needs. And on the occasion of children's day, as a parent or a guardian one of the best gift you can give to your child that they can make use of all through their life is knowledge on money matters. Depending on their age and understanding level, you can begin with imparting the acumen pertaining to money that you have developed over the years.

First and foremost your step in the direction to your child's education on money matters can be as why money is required which they would understand over a period of time. The importance of money and avoidance of unnecessary splurging can be carried in the mind and heart of the child through the examples you put forth as your deeds undoubtedly leave a strong impression on the child. The value of money can also be emphasized by illustrating how Rs. 100 held more value in yesteryears than today.

In the process, you can also encourage them to indulge in some kind of activity that can be as simple as some home affair to earn the allowance required by them as pocket money. As with it they would begin to comprehend the fact that money is made available only through hard-efforts.

You can gradually then let the child know of the bank as the major financial institution. And information on the subject can be made more indulging and involving if you take along your child to the bank and let him/her witness the environment therein and facilities that can be availed. Soon, in order to enhance your child's banking experience you can ask him to do petty banking tasks for you such as deposit or withdraw money from your maintained bank account.


Importance and incentive of saving can also be instilled in the child by giving them some amount and asking them to save. You can hand over a piggy bank for the purpose to make the choice attractive and then provide some incentive for the saving activity of the child. Going ahead, you can open a saving account for your child with the bank and make the child understand what they earn on their saving.

Further, as the child matures you can ask them to participate in the different financial decisions. This will sharpen their basis as why one decision was taken over the other and eventually they would develop interest in money and financial matters. So, in all the experiences and skills on money matters that you share with your child will go a long way in building your child's money management skills.

Story first published: Thursday, November 14, 2013, 13:31 [IST]
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