1. Parents could include kids in financial discussions pertaining to them when they are, say 8 years old.
2. They can start by imparting the basics of finances in informal chats with their kids.
3. As they grow older, parents can expose them to the cash flow in the household, by discussing purchases that involve them.
4. When kids are 12 years old, parents can even get them enrolled in a financial literacy programme, which will help them to understand about saving, investing and the importance of managing money, which will make them interested in checking prices, debating their values and taking decisions about purchases themselves.
5. Involving the kids in their purchases, even making them contribute partially or wholly, will not only help them understand the value of money, but also provide confidence about taking decisions and setting goals in later life.
6. However, they should also be overruled when their choices are incorrect, which will make them differentiate between right and wrong decisions, and this will prove to be crucial to their money choices as adults.
7. They should also be exposed to the importance of savings by opening a bank account, and teaching them how money is earned diligently by giving them minor errands to perform and pay them for their effort.
8. Even financial advisers of parents can help them in educating and training their grown-up kids, through small-ticket investments, because tapping them young and servicing them well would also help their own long-term interests as the kids grow up.
9. A timeline of financial awareness for kids could be:-
a) 5-6 years: Fun experience with identifying currency,
b) 7-9 years: Wallet and piggy bank pocket money experience,
c) 10-11 years: Child bank account full operating experience,
d) 12-14 years: Online teaching portals experience,
e) 15-16 years: Budgeting and goal-based saving experience,
f) 17-18 years: Experience of education loan, investing and part-time job.
2. They can start by imparting the basics of finances in informal chats with their kids.
3. As they grow older, parents can expose them to the cash flow in the household, by discussing purchases that involve them.
4. When kids are 12 years old, parents can even get them enrolled in a financial literacy programme, which will help them to understand about saving, investing and the importance of managing money, which will make them interested in checking prices, debating their values and taking decisions about purchases themselves.
5. Involving the kids in their purchases, even making them contribute partially or wholly, will not only help them understand the value of money, but also provide confidence about taking decisions and setting goals in later life.
6. However, they should also be overruled when their choices are incorrect, which will make them differentiate between right and wrong decisions, and this will prove to be crucial to their money choices as adults.
7. They should also be exposed to the importance of savings by opening a bank account, and teaching them how money is earned diligently by giving them minor errands to perform and pay them for their effort.
8. Even financial advisers of parents can help them in educating and training their grown-up kids, through small-ticket investments, because tapping them young and servicing them well would also help their own long-term interests as the kids grow up.
9. A timeline of financial awareness for kids could be:-
a) 5-6 years: Fun experience with identifying currency,
b) 7-9 years: Wallet and piggy bank pocket money experience,
c) 10-11 years: Child bank account full operating experience,
d) 12-14 years: Online teaching portals experience,
e) 15-16 years: Budgeting and goal-based saving experience,
f) 17-18 years: Experience of education loan, investing and part-time job.