Teaching Kids about Money and Finance

Kids are innocent and they learn very fast. If we make them understand about money and finance in their childhood and teach them about good money habits, they will do well as they grow and will have inherent good money habits. This will help them in their future life. Let’s understand how to teach them about money and finance.

1. Piggy Banks: By gifting them a piggy bank we can make them learn about importance of savings. They can buy toys or other things by first saving and then spending.

2. Games: there are various games like Monopoly, Game of Life, Vypaar etc, which we can play and make them understand how money works and how transactions take place.

3. Open An Account: We should open a saving account in our child’s name and let them deposit money in the account and understand about interest and how money grows and also other investment product.

4. Budgeting: Involve your kids in home budgeting exercise, so as to make them understand about income and expenses, essential and non-essential expenses etc.

5. Shopping: Take your kids for shopping. This will make them understand about bargaining, quality, and prices of the products. We can further explain them about wants, needs, comforts, and luxuries and how to maintain fair balance between them.

6. Discounts & Offers: When we are shopping online or offline we can explain them about various deals available at particular time and how to save money by using discounts/deals and offers.

7. Rewarding: We should reward our children to encourage them to save and also when they contribute (by controlling their expenses) in home budgets.

8. Inflation: We need to educate our grownup Childs about impact of inflation, purchasing power of Money and various investment products.

9. Contingencies: Telling them about various scenarios of life and how various situation requires money will help them to understand about uncertainties in life and how to tackle them.

10. Practice then Preach: What we teach them should also practice ourselves as practising the things makes much deeper impact then just teaching.

Small but good money habits can make a significant difference in the future life of a child, so teaching them in their starting will help them to get in there unconscious mind and use it when they need to take decisions about money in future.