How to teach money to kids

Talking finances and money to kids isn’t complicated and something shouldn’t be ignored anymore. Gone are the days when it is fine we reply saying money “money doesn’t grow on trees”. This is the piece of financial advice we were handed those days and it ended there.



If we want our kids to manage their money without issues in future then teaching them about financial responsibility at an early age is the solution. A habit that can take more time to build is saving. We can clearly say that quite a few adults are yet to master it.



As parents we want our kids to have the best. Not only the best in toys, dress, education but most importantly we want them to be safe and secure. A key lesson that needs to be taught which will guarantee they will do well is the lesson about money. This lays the foundation which will make them do well in life.



Many of us now wish that we could have been taught more about managing money. Missing the opportunities and being reluctant to talk about finances are reasons many parents give on why they couldn’t discuss with kids.
Children are very eager to learn about the wisdom of finance we have. So giving them the gift of financial literacy would be the best foundation we can do for them.

Here are ways you could start teaching money



Start early

Math forms most part of money knowledge. So the learning about money could start as early as when they start learning math. What is money?Where and how it is used are the first and foremost concepts.
Also they need to know where it comes from. They need to clearly understand that it simply doesn’t come out of the wallet. Make them understand that we get paid when we work. SO no work results in no pay. This would make them understand that to earn they must work.



Give allowances

Assign a chore or ask them to run an errand and reward them. As they age you can increase the amount. Teach concepts like save, invest and spend. In this way they will know to allocate what they receive. Creating opportunities for them to earn is a great way to learn about money and to understand that their work is rewarded.



Teaching them to save

It is important to let them know that money is not only for spending but also to save for future. Saving will help in teaching discipline, gratification, setting goals , planning, being prepared and most importantly feeling secure and independent.
Giving them chances to set short term goals like to buy their favourite stationary or favorite toy will make them more enthusiastic to save. TO begin with they could start with saving in a piggy bank and then proceed to opening a savings account once they are old enough.



Make them understand and make decisions

Tracking where money comes from and how is it going to be spent teaches children to make smart decisions. Make them understand that they can pay people to get things done for them when they grow up or also spend in getting things for themselves. The key here is for them to understand that it is going to cost them either way.



Involve them in financial decisions and ask opinions

When I say ask opinions it doesn’t mean you have to go by it. It will help in boosting their morale that they are becoming mature and capable of becoming a good adult. They will also get to know how you handle the situations and learn to model you. Start this in their teens, the goal here is to talk about money freely and not getting stressed up.

See where they go wrong and grasp the situation to teach

There might be situations where the kid spends the entire money , or cable bill rockets and so does electricity. DO not cave in. Instead use this opportunity to make them understand that if money is gone it is gone . Let them know that extra TV hours count, leaving the light on counts. This will make them realize and start acting responsible.



Work on your relationship

Kids learn by mimicking our behavior. So if they notice that we are stressed, spending beyond boundaries and keeping the finance scare they are most likely going to become like you. They cannot think it is normal if you spend money beyond limits so act responsibly and be a good role model.
This also sends out a strong message that you practice what you preach. Talking to them about saving and investing and on the contrary ending up be scarce doesn’t picture a good role model.



Teaching differences

Make sure kids understand differences between needs and wants. Let them be responsible for the decision they make to spend money on a trip to circus or a video game. So later they cannot blame you. Let them enable themselves by making a priority on what do they want first. Making them understand what is their dire need and what is a want helps them make better decisions.


Gratification

Kids need to understand that they don’t always come with a bag of goodies after leaving a store. Visiting every time doesn’t mean we spend and buy stuff. The goodie will make its way during an occasion and not during every store visit. Making them save money for their most wanted goodie is another way they learn to save. And once after they purchase you could see how thoughtfully they make use since it came out of their own money.



So it isn’t late if you haven’t started. There is no right time and no time when it denotes your lagging behind. If you are reading this and plan to start, I wish you the best.

COPYRIGHT NOTICE –
@Sindhu Vinod Narayan. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links used, provided that full and clear credit is given to Sindhu Vinod Narayan (Thatmadrasmom) with the right and specific direction to the original content.

This post is a part of Blogchatter Half Marathon.’ 

5 reasons why women should start investing

Gone are the days when men were the only earning members and the finance minister of the house. We now live in a period wherein men and women play an equal role in working to raise the standards of the family and also help provide a better lifestyle. So if both work hard the odds of leading a high-quality standard of living are guaranteed, once they earn, how to plan on the expenditure and investments is all together with a bigger subject that needs more knowledge.



We surpassed the period where men decide the expenses and allow the budget for household expenditure. The world we now live in wholeheartedly accepts or to put it better believe that women can handle finance equally or should I say much better.



The world of smartphones gives her easy access to buy a gold bond if she wants to invest in gold. Not only that gone are the days where it’s difficult to know how to make money or how to invest. All this is now available at her fingertips just by a click or by asking a query( thanks to Alexa and Siri). Shoot the query and within a blink of an eye, you get results and solutions. It’s now even easier to get certified in the financial sector with the wide range of courses available online through various learning portals. Women can not only equip themselves with knowledge but also start making money by investing and saving. Not to forget that life and medical insurances can also be applied with a click from an app.

The modern world truly opened doors wide for women of this age to explore the world of finances from the comfort of home.



Since women are much better to handle situations and multiple events happening they also forecast long-term plans and can make better investment plans to improve the quality of lifestyle and achieve future goals.



Here are the hows and why I urge women to start investing.


Future goals: Women always think ahead be it the five-year plan or a ten-year plan. They make the blueprints and work on achieving the goal. Improving the quality of lifestyle, acquiring properties, higher education, vacations, and whatnot. Ask her what she wishes for in the future you will get your answers in a jiffy and that too with proper planning and priorities sorted. This is ideally the goal most women have be it someone who works in the corporate or a housewife who helps manage the home.



Learning about investment: Online classes are not only for school-going kids these days but also for adults. Virtual learning opened doors to many fields including finance. Learning centers, youtube, and dedicated Facebook and what’s app groups are now becoming better options to kick start financial learning. Doing this will not only enable you to manage finance at home but could also open doors to various job opportunities which would mean extra income to save more.



Advisors: If managing it on your own is a situation that happens not to worry when you have experts in the field to guide you through the process of selection of investing in where and what. It is completely ok to not know the technicalities and how-tos of investing and take help from experts. As long as your goal is met, this is not something to be worried off.

But make sure to convey what your goal is and how you plan to achieve meaning the milestones that you would want to see before the final goal.



Being financially independent: Every woman working or no, married or single must be financially independent. Unforeseen events can happen anytime with no warning. This could be a recession, loss of property, theft, or even problems in the relationship. If you are financially independent there is nothing to worry off, as long as you can take care of the situation on your own and not sit and brood thinking that you are hopeless and need money.



Better investor: Studies on comparison between man and woman bring out results that women are willing to access risk, patiently learn the how-tos, and not expect quick outcomes. This slow but patient approach marks them separate as better investors than men. They don’t choose shortcuts but are willing to take the longer route to attain their goal.

The lockdown last year saw a lot of women giving wings to their entrepreneurial spirit and give it their best. Supporting them gave me a lot of happiness. Though I’d say that I gained no monetary benefit, the feeling of uplifting people definitely is something above money. But don’t let that die out your dreams.



So if you are someone who is still depending on your better half for finances, there is no much better time than now for you to make the decision. Take smaller steps, take the time to gain expertise, explore the opportunities, choose the best of what suits you, invest, save and live a carefree life and the life of your dreams. Be financially independent and make the world yours.

Saving is an important habit that can be cultivated over time. What matters is to get started and be cautious of how the money is spent.

This post is a part of Blogchatter Half Marathon.’ 

This blog post is part of the blog challenge ‘Blogaberry Dazzle’ hosted by Cindy D’Silva and Noor Anand Chawla.

COPYRIGHT NOTICE –
@Sindhu Vinod Narayan. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links used, provided that full and clear credit is given to Sindhu Vinod Narayan (Thatmadrasmom) with the right and specific direction to the original content.