How to teach children to make money: Be a NEW-AGE parent, give your children this big money lesson on World Students' Day
In this new age when children are virtually taught how to spend on each and every thing that catches their fancy, what has become of critical importance, is to restore the savings culture of yore.
In this new age when children are virtually taught how to spend on each and every thing that catches their fancy, what has become of critical importance, is to restore the savings culture of yore. This is crucial simply because children must learn to control their spending habits or they will end up in huge debt and therefore, their future will be jeopardised. Earlier generations were taught to save money. Some parents gifted their children a piggy banks to collect and save money for specific reasons. These actions soon became habits.
However, to really empower children, parents must themselves take the next step that parents in olden times had no idea about. What will definitely make our children's lives better is this course of action. We ask: What if you teach your child a habit of investing along with saving? Teach them to invest in the right things and make their money grow into substantial sums? Bank savings accounts, fixed deposits, MF, PPF, Sukanya Samriddhi Yojana to credit cards, teach them about every investing tool possible.
So, on the occasion of World Students' Day today, Zee Business has prepared a special show on the better options of investment as children grow up. According to Amit Kukreja, founder of Amitkukreja.com, students should be given knowledge of investments since their childhood, making them responsible in nature. The students should have a share in the budget planning of the house, which will teach them about investments and savings in a practical manner.
Difference between savings and investment
- Savings and investment are completely different
- Cash and money in a savings account are investments
- Investing in some medium with the hope of an increase in money is an investment
- Investing in mutual funds, shares and gold is investment
- Discuss investing with children.
- Be transparent about small investments
- Talk to children openly about their careers
- Also, discuss expenditure on studies
- Talk openly with children about home and education expenses
- This will create awareness about investing in them.
Teach investing with pocket money
- Let children learn, not to spend pocket money
- Save some money and put it in Savings Account or RD
- Encourage investment in MF, PPF, Sukanya Samriddhi
- Make them partners in household expenses
Teach home budgeting
- Involve children in making a household budget
- Make a budget for small household expenses
- Teach to keep a track of salary of servant, gardener, driver
- Ask to keep an account of DTH, Internet expenses
Make a special budget for children
- Give them the responsibility to plan for expenses
- Let them plan a festival budget
- Give them a chance to earn by giving small jobs
- Teach them about the difference in your needs and desires
Saving Account for Children
- Open a savings account for children in any bank
- These accounts can be opened under a guardian
- Children aged 10-18 years can operate their account themselves
Teach them about credit cards
- Explain the usage of a credit card before giving it to your children
- Primary users will be made only after 18 years of age
- You can give an add on card to children before 18 years
- Credit card affects your CIBIL score
- Use credit cards only for important things
- Can be a helpful tool in emergency
- Children must have a financial understanding from childhood
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