Money Saved is Money Earned. Here is how you can develop personal finance and saving habits in your children. We will be drawing your attention to the importance of financial education among them.
Various subjects are taught in school to children, since the tot days to strengthen their skills and knowledge for a happy future. But when it comes to financial education, we as parents are a little ignorant, thinking it is too early for a kid. And this perspective has been financially disrupting the crucial period of our children.
Why personal finance and saving?
Here is why our teaching pattern needs an upgrade.
Why raise children with financial values?
How to engage your kids in developing financial values?
By giving them an understanding of money, you can teach them about prioritizing their wants. Kids are volatile and to teach them the technique of prioritizing is to make them understand how they can excel in their area of interest. For example, if they are interested in ‘Ironman’, make them understand how Tony Stark used his fund piece by piece for ‘Avengers Initiative.' The way he uses the money earned from “Stark Industries” for the 360-degree growth of every avenger. Or, if they are interested in ‘Cinderella,’ how can they ‘help her build her estate.’ Or how they can use the available resources to build themself. Their superheroes should inspire them in all ways.
Play and Learn
Learning should always be fun. Create opportunities and chances for your children to make them understand the value and purchasing power of money. Many schools involve games like 'Monopoly' and 'The Game of life' in their timetable to make the students understand finances well and develop financial value. Parents can start planning such little activities and games for their children from a young age. This way child will be encouraged to use the money systematically.
Train and educate them
The National Centre of Financial Education (NCFE) runs a flagship program in the schools of India. Any school can openly enroll itself for the Financial Education Training Program (FETP) by NCFE. Even teachers on behalf of the schools can attend the training. The qualifying teachers and schools get certified by NCFE as Money Smart.
To provide advanced financial training and NCFE has been initiating such programs in collaboration with CBSE as well.
For collaboration or detailed information, you may visit their website.
National Stock Exchange (NSE) Academy has come along with Maharashtra Knowledge Corporation Ltd. to provide personal financial management programs in India. This course covers learning about income, taxation, expenditure, savings & investment avenues, borrowing, managing risk, budgeting etc.
The program is currently available at the MKCL authorized learning centres. For more information, you can visit the official website- nseindia.com
Real-Life scenarios learning
About the real market scenarios. What is profit and loss, what is risk and how to manage it, what are stocks, assets, and a few basics of investing? Promote saving and investing behaviours in them. Make them aware of the provisions available for financial growth. Educate them how their early savings and investments can equip them for their dream life. Like evaluation methods, insurance plans, pension products, compounding investments, and trading knowledge.
Concluding, we collectively need to contribute to the growth of our children. No one can deny the fact that money is the most valuable material. We as parents need to take the responsibility of adding knowledge to our kids learning. Start giving them adequate financial exposure from a young age. Has this article encouraged you in teaching your kids financial techniques or, how can we add on to the financial wellness of the future? Raise your thoughts and queries below.
For more information, you can visit FinTech Blog.
Till then, happy investing!