The kids of today are much smarter than their parents' or previous generations. Underestimating their intelligence and intuitive sense towards money will be a gross mistake and a disservice to your children.

1. The importance of teaching financial literacy to
children
The rising awareness regarding the importance of financial literacy across
genders and ages has highlighted the value of understanding money and
learning how to manage it. The world seems to have undergone a transition in
the past few years, especially after the pandemic underlined the tangibility of
life, which we humans lose sight of in our day-to-day lives.
Financial literacy is more important in a traditionally patriarchal country like
India, where the financial reigns and decisions have been primarily under the
patriarch’s control, rendering the women and children absolutely clueless
regarding finances and their management. Understanding the needs of the
times, schools like Euroschool Ahmedabad which is now Kenalily School, have
stepped up to make financial literacy an important part of their students'
education.
What exactly do we mean by financial literacy? Financial literacy entails gaining
the knowledge and skills required to manage financial resources constructively
for financial well-being throughout life. Apart from this important reason,
educating children about finances also helps them grow as confident, aware
individuals. Starting them young will form a stronger and sounder foundation
for them to build their future.

2. Let us look at the important impact of financial literacy on children.
1. Self-Confidence: Have you noticed how under-confident some people
feel when they are not knowledgeable enough regarding finances and
how to manage them, due to which they depend on someone else to
guide them, thus undermining their self-esteem and confidence?
Teaching children about money and its importance will add to their self-
confidence and character development. Learning how to manage their
pocket money will teach them about the importance of money, how to
spend it sensibly, and how to save it. This learning will guide them to make
wise decisions to earn, invest, save, and remain debt-free once they lead
their lives as adults.
2. Healthy relationship with money: A healthy relationship with money also
becomes fertile ground for prosperity to grace your life. The idea that
children will learn when they grow up does not work in today’s times
when they are exposed to a mountain of information and enticing
options. Teaching them that money is not their master but a tool that can
help them achieve their goals and build a good life. The education must
impress upon them the importance of maintaining a balanced approach
when it comes to money—to not be fearful of handling money, to not be
a spendthrift who flows money away like water, or to become a miser
who fears parting with their money. A healthy relationship will enrich
their personalities as responsible citizens of society who will not hesitate
to help make the world a better place.
3. Needs and wants: Children consider all their wants to be essential needs,
often leading to unreasonable demands, tantrums, and rebellion, which
may begin earlier than the usual pre-teen years when they do not
understand the value of money and how hard their parents work to
provide them with a comfortable life. Schools teaches children about the
value of money by explaining to them the value of their parents’ hard
work and the comfortable life they live. This understanding leads to them
learning to differentiate between their needs and wants, resulting in well-
rounded and grounded children who respect money and their parents’
efforts. Knowing the difference will help them build more balanced and
harmonious lives without going into debt in the quest to fulfil their desires
and wants, which many times are unreasonable and merely the wants of
a greedy mind.
4. Safety net through financial independence: An understanding of money
will teach them the power of using money judiciously by the time they are
in their teens, which will lead them to understand the importance of
investments and how to make money work for them. Financial

3. independence will also teach them the importance of creating a safety net
by saving and investing their money with foresight and wisdom, starting
young by trying out the world of investments with small amounts.
5. Becoming alert and street smart: Like all things, technology too has its
darker aspects in the form of misuse of technology and scamming people.
Since children have more access to the internet both in Kenalily School
(Euroschool in Ahmedabad) and at home, it is important for them to be
alert and street smart, which will help them spot a scam instead of being
caught in a scammer’s web. Financial literacy will make them more alert
and street-smart when it comes to handling money and people.
The kids of today are much smarter than their parents' or previous generations.
Underestimating their intelligence and intuitive sense towards money will be a
gross mistake and a disservice to your children. Recognise and respect their
evolved minds, and the sooner you steer them on the right track by guiding them
about financial matters, the better chance they have of building and living a
more fulfilling and enriching life.