Financial Literacy: A Session for parents.
Tools To Make Kids Financially Strong
Dr. Nicholas Correa
Trainer, Ratnasagar Publication
When it comes to kids and
money, many parents are
After all, financial literacy
is the last thing in
How do you teach kids
Money lessons are one of
the most important lessons
The sooner a person learns
to value money, the
greater are the chances of
him having a comfortable
These lessons should be imparted at a
young age, and to do so, parents should
come up with interesting tools for kids to
importance of money and the benefits of
Let’s have a
look at some
of the easy
tools to learn
Create a chart
Parents are the first teachers of kids.
So the parent should take great care
of what they portray to their kids.
If children see their parents saving
money, so will they. To cultivate this
habit in younger, one should make a
reference chart on how much to
An easy calculation would be 10
percent of earnings should be saved.
So when the kids get
Put money into piggy bank
Kids who are small enough and
don’t understand the value of
having a savings account in bank
should be provided with a savings
account at home.
And the best way is to have a piggy
bank. The habit of putting money
into piggy bank and counting the
savings after regular intervals of
time would excite a kid to save.
Parents should always keep handy
some change, so that kids look
forward to have a coin from you
and put it in their piggy bank.
Avoid impulsive shopping
Groom your kids to have patience
and not indulge into impulsive
This habit can be cultivated over
time by putting a pause between
the kids and their favourite
This would give them time to think
if they really want the item. If the
kid forgets and do not crave for that
item anymore then it would mean
the kid just wanted it and does not
Visit to the bank
Kids love to act like elders as much
as elders love to go back in time and
become kids again.
A mere sense of responsibility
excites children and a productive
phenomenon is to take them to
bank and open a savings account in
The feeling of possessing an account
in bank would be enough to raise a
sense of responsibility in the kids
and would encourage them to save
Maintaining one’s bank book
Another motivational way for kids to save
money is to let them calculate their
savings and maintain their own bank
This would allow the kid to see for
himself how his money is growing and
would instil a feeling of responsibility.
Kids who are old enough to do the simple
math would not only maintain their own
bank book but would also be interested
to make simple investments to grow their
Making a list
One way to curb unnecessary
spending is to teach your kids
make a list of items that they
By doing so they would be
able to differentiate between
their needs and want and stop
This habit is not only useful for
kids but should be followed by
adults as well.
Resist futile spending and say ‘No’
One of the most important lessons that a
kid should learn at a young age is to
understand the difference between want
Most of the times, children cannot resist
spending money in things that they don’t
need and sometimes don’t want. But the
presence of money in their pockets
prompts them to spend it.
Once children learn to say ‘No’ to
expenditure should always be related to
need, they could help themselves resist
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