How to Teach Teenagers About Money...

Teenagers are one step away from adulthood, teaching them about money becomes very important for their future as well as to make them a responsible citizen. We should make them aware about why we should save and what is the value of money. In this post we will learn few things which can be used to make our teenage kids more aware and sensible about money. 

1. Introduce them to the magic of compound interest.

Compound interest is a magical thing! Introduce your teen to it at an early age, and they’ll get a head start on preparing for their future. The earlier your teen can get started investing, the better.

2. Learn the budgeting.

The teenage kids know basics of money so it’s the time to get them in the habit of budgeting their income—no matter how small It is. They should learn the importance of making a plan for their money while they’re still under your roof.

3. Help them figure out how to make money.

We see that our teenagers have plenty of free time like—summer vacations, winter vacations, Diwali/Christmas holidays etc. If he/she teen wants some money (I guess everyone want’s it), then help them find a job or become an entrepreneur! This will get them money and also help them learn new skills.

4. Give them the responsibility of a bank account.

By the time our kid’s a teenager, we should open a simple saving bank account. This takes money management to the next level, and will (hopefully) prepare them for managing a much heftier account when they get older.

5. Teach them the danger of credit cards.

As soon as your kid starts earning, they’ll get hounded by credit card offers. We should tell them the dangers of credit card and why debt is a bad idea, or else they’ll become yet another credit card victim.

6. Teach them contentment.

Your teenage kids probably spends a good chunk of time on mobile as they scroll through social media. And whenever they’re online, they’re seeing the highlight reel of their friends, family and even total strangers! It’s the quickest way to bring on the comparison trap. You may hear things like:

“Dad, Sachin’s parents bought a brand-new Honda City Car! How come we are still driving this old Maruti?”

“Mom, my friend at school got to spend 50,000 on her Sweet 16 party. I also want to do that on my b’day!”

Contentment starts in the heart. We need to make our kids understand that their Maruti (although not the newest car on the block) is still running well enough to get them from point A to point B. And you can still throw a memorable, milestone birthday party without spending a chunk of your retirement savings funding it!

 

Teaching your teenage kids about money is little challenging and going to take time on your part. But if you want to make them responsible adults and want them to know how to successfully manage their money when they get older, taking the time now will be worth it.

And yes, one of the best ways to teach your kids about handling money is to give them a chance to make some of their own!

किशोर बच्चों को पैसे के बारे में कैसे जागरूक करें...

किशोर वयस्कता से एक कदम दूर हैं, उन्हें पैसे के बारे में पढ़ाना उनके भविष्य के साथ-साथ उन्हें एक जिम्मेदार नागरिक बनाने के लिए बहुत महत्वपूर्ण हो जाता है। हमें उन्हें इस बारे में जागरूक करना चाहिए कि हमें क्यों बचत करनी चाहिए और पैसे का मूल्य क्या है। इस पोस्ट में हम कुछ चीजें सीखेंगे जिनका उपयोग हमारे किशोर बच्चों को पैसे के बारे में अधिक जागरूक और समझदार बनाने के लिए किया जा सकता है।

1. उन्हें चक्रवृद्धि ब्याज के जादू से परिचित कराएं।

चक्रवृद्धि ब्याज एक जादुई चीज है! अपने किशोरों को कम उम्र में इसका परिचय दें, और वे अपने भविष्य की तैयारी के लिए एक बहुत ही महत्वपूर्ण शुरुआत करेंगे। आपके किशोर जितनी जल्दी निवेश करना शुरू कर सकें, उतना अच्छा है।

2. बजट के बारे में बताएं।

किशोर बच्चे पैसे की मूल बातें जानते हैं, इसलिए उन्हें अपनी आय का बजट बनाने की आदत डालने का समय आ गया है - चाहे वह कितनी भी छोटी क्यों न हो। उन्हें अपने पैसे की योजना बनाने के महत्व को सीखना चाहिए, जब तक वे आपके साथ रहते हैं।

3. पैसे कमाने का तरीका जानने में उनकी मदद करें।

हम देखते हैं कि हमारे किशोरों के पास बहुत सारा खाली समय होता है जैसे- गर्मी की छुट्टियां, सर्दियों की छुट्टियां, दिवाली / क्रिसमस आदि की छुट्टियां । अगर उन्हें कुछ पैसे चाहिए (मुझे लगता है कि हर कोई पैसे चाहता है), तो उन्हें नौकरी खोजने या उद्यमी बनने में मदद करें। इससे उन्हें पैसे मिलेंगे और उन्हें नए कौशल सीखने में भी मदद मिलेगी।

4. उन्हें बैंक खाते की जिम्मेदारी दें।

हमारे बच्चे के किशोर होने तक, हमें एक साधारण बचत बैंक खाता खोलना चाहिए। यह धन प्रबंधन को अगले स्तर पर ले जाता है, और (उम्मीद है) उन्हें बड़े होने पर बड़े खातों के प्रबंधन के लिए तैयार करेगा।

5. उन्हें क्रेडिट कार्ड के खतरे के बारे में सिखाएं।

जैसे ही आपका बच्चा कमाई करना शुरू करेगा, उसके पास बहुत सारे क्रेडिट कार्ड ऑफ़र आने लगेंगे। हमें उन्हें क्रेडिट कार्ड के खतरों और ऋण एक बुरा विचार क्यों है के बारे में बताना चाहिए, अन्यथा वे एक और क्रेडिट कार्ड ऋण सर्कल के शिकार बन जाएंगे।

6. उन्हें संतोष करना सिखाएं।

आपके किशोर बच्चे शायद मोबाइल पर अच्छा समय बिताते हैं क्योंकि वे सोशल मीडिया पर स्क्रॉल करते हैं। और जब भी वे ऑनलाइन होते हैं, वे अपने दोस्तों, परिवार और यहां तक ​​कि अजनबियों की हाइलाइट रील देख रहे होते हैं! तुलना जाल को लाने का यह सबसे तेज़ तरीका है। आप इस तरह की बातें सुन सकते हैं:

"पिताजी, सचिन के पिता ने एक नई होंडा सिटी कार खरीदी! हम अभी भी इस पुरानी मारुति को कैसे चला रहे हैं?”

“माँ, स्कूल में मेरी सहेली ने अपनी स्वीट-16 पार्टी पर 50,000 खर्च किये। मैं भी अपना जन्मदिन ऐसा करना चाहती हूं!"

मन को वश में करने से ही संतोष की शुरुआत होती है। हमें अपने बच्चों को यह समझाने की जरूरत है कि उनकी मारुति (हालांकि वह सबसे नई कार नहीं है) अभी भी उन्हें एक जगह से दूसरी जगह तक लाने ले जाने के लिए पर्याप्त रूप से चल रही है। और हम एक यादगार जन्मदिन की पार्टी बिना बहुत ज्यादा खर्च किए भी कर सकते हैं!

अपने किशोर बच्चों को पैसे के बारे में पढ़ाना थोड़ा चुनौती-पूर्ण है और आपकी ओर से समय लेने वाला है। लेकिन अगर आप उन्हें जिम्मेदार वयस्क बनाना चाहते हैं और चाहते हैं कि वे यह जानें कि बड़े होने पर अपने पैसे का सफलतापूर्वक प्रबंधन कैसे करें, तो अभी समय निकालना होगा।

अपने बच्चों को पैसे का प्रबंधन करने के बारे में सिखाने का एक सबसे अच्छा तरीका है कि उन्हें खुद कमाने का मौका दिया जाए!

The Best gift for our Children

We all want to give best of the world to our kids. It stars with toys and small things and goes on for their bigger items like laptops, gaming console, bike and car and so on. But as well all know that these items become redundant/ outdated shortly there market value also goes down significantly and needs to be replaced with new version of the items. So what can we give to our kids which does not get outdated and they can use it when they really need it and best of it that its value keep will still keep on growing?

Before getting into the details of that lets understand another perspective of our working life.

There are basically two type of work; either we work for our self which is called as business/ entrepreneurship or we work for others which is called as job or employment.

1. So what is the difference between a Business Person/Entrepreneur and an Employee?

The basic difference is the opportunity business person/entrepreneur can offer for the next generation.

Let us understand it more…

An employee starts his journey at a junior level and works his way up to a senior position and then retires at 55 to 60 yrs.

An Entrepreneur also start his journey from zero and with a lot of struggle and efforts grows his way up. However he has a choice whether to retire or not till health permits.  

As we can see that both of them have worked hard but the entrepreneur has created assets that will continue to generate income even in his old age and more importantly, he has created a strong base for the next generation to take over and make it bigger. The kids of the entrepreneur will not have to struggle like his father and don’t need to start from zero but from where their father left and can make it grow more.  But the next generation of an employee will have to start again from the scratch as his father did and will have to go through all the struggle before they can attain financial freedom.

2. What is the main worry for an employee?

As we can understand one of the biggest worry for an employee is retirement. While we should plan our retirement/financial freedom, we can also gift this financial freedom to our next generation as well so that they will not have to worry about retirement planning and can live life to the fullest.

That is why it is important for all of us to create assets that could generate passive income even while we are not working. Passive income is like interest income, dividends from stocks/mutual funds, rent from commercial or residential property, Royalty etc. which can then be passed on to the next generation.

3. So how can we gift the financial freedom to our kids?

Here is one simple way to do it…

For example if our monthly expense is 50-75k today and we had a corpus of Rs. 1.5 cr. in a balanced fund which can give 10-12% annual return, Then we can withdraw 50-75K per month allowing our principle of 1 cr to grow at 5-6% annually. So, it’s safe to assume that a 1.5 cr corpus today can take care of our financial needs and can get us financial freedom.

Let’s assume our child who is 10 years old now has 45-50 yrs before he/she retires. If we assume an inflation of 7-8%, considering a benchmark of 1.5 cr retirement fund today, the retirement fund needed for your child will be approx. 20 Cr.

So that’s our goal. If we can plan for this now…our children will not have to go through the worry and struggle of retirement planning. Imagine if our parents had done this for us…wouldn’t our life be a little different? And it’s not the Will, it is the knowledge and opportunity…which they didn’t have…but now we have it and we can utilise it for best of our use…

4. How to create such a huge corpus?

 
An 8.5 lakh invested with a fund which can generate a 13% annual returns… will become 20 Cr in 45 years. Now…if we don’t have 8.5 lakhs, there is another way out…Let’s start a monthly SIP of 10000 for 5 yrs and then leave that amount for 45 yrs…we will have our 20 Cr by that time.

Yes, It’s that simple….we just need to spare 10K/month for 5 yrs and it would have taken care of our child’s retirement…they will not have to worry about it in their life time. If we teach them to do the same, our future generations will remember us for a long time even after we are gone….

This could be one of the best gifts that we can give to our child.

Financial freedom actually means the freedom to do things we want to, its gives us the freedom to work for our self, travel the world, spend more time with family, do things that we love etc … It is something beyond the worries of earning and preserving money, and yes we can achieve it  easily with some smart and early planning.