4 Tried and Tested, Tips and Tricks to make your child learn about money and be Financially Independent

4 Tried and Tested, Tips and Tricks to make your child learn about money and be Financially Independent

Financial independence is important for everyone. So why not involve our kids and make them aware of the importance of money and especially its management. Today I am going to share some tried and tested tips to make your child learn about money management.

As a parent, I always try to get my Son aged 12 years involved in banking operations. Although the bank provides most of the things online. The new generation is so tech-savvy that they adapt to internet banking faster than us. Although, I make a point to take him along whenever I have to visit the bank branch. He knows how to fill a withdrawal slip, what is a pay-in-slip, and can get a DD also made. That’s how my parents taught me. But how about a corpus of his own, his own money.

Teach them to save:

At a very tender age, when kids get Shagan from grandparents and relatives, we ask them to save it in piggy banks. But piggy banks do not give returns and can be broken at any time for the smallest of things. First thing first, open their bank account. Minor accounts are easy to operate. Teach them how they can transfer money into their accounts. Let them have access to their bank debit card, of course under your guidance. Teach them how to study the bank statements.

This way they will have a sense of confidence, that even they have some corpus of themselves. Opening a bank account can also be a great birthday gift. Nowadays everything is digital.

Get them involved in digital transactions:

India has seen great infrastructure and growth in the last couple of years in digital payments. We have so many digital wallets, which we use on daily basis. When every you are doing any digital transaction, involve kids. The first time just shows them how it is done and once in a while ask them to do it themselves. It can be as simple as recharging the DTH or paying at a shop. You can’t even realize how fast kids can learn about money.

learn about money
Earlier the better

Penny saved is a penny earned:

Once kids are 8-9yrs, start giving them pocket money. Ask them to maintain an account of it. After observing for a few months, teach them how they can save money for a bigger goal. Spending wisely is good for kids and grown-ups alike. This way they will learn about the budget too. Once they agree to save money. Tell them rather than just keeping the money idle, they can use it to grow.

First, we as parents need to show how we manage our finance. Believe it or not, kids follow what their parents do, rather than just listening to what their parents tell them. Encourage your children to start investing from a small amount of Rs. 500 every month and forget it for a couple of years. By using the L&T SIP calculator show them how much they can invest and get in return which will help them contribute to a family vacation. For education, you can also make them check the L&T education calculator and understand how being as a kid they can still help to bring down the financial burden of their parents. These efforts will surely make your kid feel responsible and proud.

The more you give the more you get:

As a human being, it’s our responsibility to give back to society. Introducing kids to charitable organizations or making them understand the importance of giving to others will help them being a good human being. Kids are generally kind and generous, we just need to guide them. There are many organizations that keep doing donation camps at various places. You have to show kids the right way.

I am sure being a responsible parent even you want your kids to learn about money and be financially independent. Because the confidence that money can bring nothing else can. The power and potential of saving and growing money are as equal as earning money themselves. The earlier you start the better it is.

Do share your views and ideas that you are undertaking to make your kid’s money aware.

Till then Happy Parenting.

If you like these tips, head straight to this post to know, Is earning a paycheck, real empowerment?

Disclaimer: This information is for general information only and does not have regard to the particular needs of any specific person who may receive this information. L&T Investment Management Limited, the asset management company of L&T Mutual Fund or any of its associates; does not guarantee/indicate any returns/and shall not be held liable for any loss, expenses, charges incurred by the recipient. The recipient should consult their legal, tax, and financial advisor’s before investing. The recipient of this information should understand that statements made herein regarding future prospects may not be realized or achieved.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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