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Wednesday, April 24, 2024

How and when to give financial knowledge to your children

Times have changed a lot now and there is nothing new about teaching your children about sex or money at a young age. But, the question is when do you impart financial knowledge to your kids. This article deals with that subject plus how to do it.  

A majority of children born in the 90s or 80s had little knowledge about handling money. At that time, parents gave money to their children only to buy some snacks or toffee, without teaching them about money. Children kept the remaining money in a piggy bank to buy something big they wanted, and my son still does. But, I understand that it is very important for me and other parents to start teaching our kids about money when they are still small. This would help them become money-wise and avoid doing mistakes when it comes to saving or spending money. 

Today’s children have easy access to good, free tools for learning about the worth of money.  

Unlike the children of the previous generation, children now have the ability to make significant savings and become financially secure at an early age.  

Ankit Gera, who jointly founded Junio, has a different take on whether this makes today’s children smarter than earlier generations’ children.  

There are also various apps, such as Junio and Birdfin, that may be used to help children learn about money management.  

Gera’s company also provides the Junio Smart card, a viable medium for teaching pre-teens and teens about saving, spending, and budgeting through a series of exercises. 

It isn’t really a question of whether kids in the early 1990s were smarter than youngsters today.  

Previously, financial or money management for children consisted primarily of receiving cash and depositing it in a piggy bank. 

However, according to Gera, today’s children increasingly embrace  online platforms to learn, shop, and connect with their classmates, especially after the Covid-19 pandemic. 

Gera went on to say that because the number of digital platforms in practically every industry, including fintech, is fast increasing, it is critical to teach children money management skills at a young age.  

This will help kids grow up to be financially self-sufficient individuals.  

Gera advocated for teaching children about money as early as possible.  

He says, ‘At times, even very young children can grasp the concept and value of money.  

So, the best approach to start is to expose them to real-life circumstances and experiences in which kids interact with money and gain an understanding of its value.’ 

You have the ability to create teachable moments for your child.  

For example, when you pay the cashier at the grocery store, describe the process to your child.  

Instead of teaching children all about money at once, you should take it one step at a time.  

Budgeting, credit or borrowings, risks, and basic taxation are some of the most critical money lessons you can teach your children. 


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