One of the greatest joys of childhood is the constant awe and wonder that a child feels at everything he sees in the world around him. Every sight, sound, and situation is new! Whether it is a simple bike ride, a day in school or a new toy, there are always novel and exciting experiences awaiting them.
We, adults, play multiple roles in the lives of our children – as parents, grandparents, teachers, mentors, role models, elders, and well-wishers. We have just celebrated Children’s Day, along with enticing our children with gifts and wishes, let’s take up an important aspect of learning and impart Money Management for children, a valuable advice to our children regarding a critical aspect of life – handling finances.
Gone are the days when the kids of the family were kept ignorant of the family matters. Earlier generations believed in shielding children from the realities of the family situation – be it financial difficulties or relationship issues. But today’s children are more world aware. They are exposed to several external mediums such as TV, internet, social media. So it is not practical to keep them isolated from the happenings in the household.
Ask any middle-aged person when was the first time they were handed over any money by their parents to spend on their own. The most common answer you will receive is – not until high school! When teenagers started using public transport, only then parents would give them money. And never more than five rupees or ten!
Today’s kids, even at the age of four or five carry money with them. One common reason for this is that working moms allow the kids to pick up lunch at the school canteen. A child’s first experience with managing money might still be the good old piggy bank. But today, money is not just held and spent as notes and coins. Digital money is the latest revolution in money matters.
One gadget that has captured the imagination and aspiration of kids is the smartphone. Kids are not happy playing with toys anymore. They prefer the mobile phone as a playmate. So it is only natural that their familiarity with using mobile phones is very high. In fact, when adults can’t figure out how to use a feature on the phone, it’s quite common for them to ask the kids about it! With this familiarity comes the early exposure to digital money.
Accessing digital wallets to make payments, ordering and paying for food online, credit card purchases, online money transfer, equity trading – there are multiple forms of money handling that have emerged as a result of the smartphone revolution. And the kids in the house are a witness to all this.
Money Management for Children
Just like how we educate the kids on handling cash, we also need to sensitize them on money management. A few recommendations on how to go about this:
1. Educate them on the value of money, whether digital or real – Irrespective of the financial position of the family, children must be made aware of the importance of money. The efforts that go into earning money, the problems of overspending, and the trap of debt are all important lessons that need to be imparted to children. This will motivate them to work hard towards a career goal and then enjoy the monetary rewards of their effort. Sometimes when money is in digital form, the tendency to spend is higher than with cash as the loss is not directly visible. This is especially true with kids and teenagers. Educating them towards the pitfalls of mismanaging money is critical.
2. Restricted access to smartphones – Kids might use a parent’s phone to call their friends, watch videos, play games and so on. As long as adults use the phone in front of the children, it’s impossible to prohibit the children from accessing the phones too. But there must be clearly defined limits for this. Which apps are permitted, when can they use? and for how long? such things must be clearly laid out and the children must be trained to abide by these restrictions.
3. Security lock for sensitive content – Business related matters, personal emails, banking apps, and such sensitive content must be clearly password protected. This is to prevent accidental access from the children. Allowing children to order food online or subscribe to video streaming sites are a strict no-no. This is not the place to let children be independent. Easy access can only increase temptation. Why expose children to this unnecessarily?
We at Shanthala Chits consider ourselves as financial partners of our valued readers and customers. The financial stability and prosperity of our investors is our primary goal. Educating our children on money management and financial matters is of prime importance in order to meet this goal in the long term. So on this special occasion of Children’s day, we thought of passing on this message to our readers and investors.
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Shanthala Chits is a Government approved chit fund company with a 23-year successful track record and thousands of satisfied customers. Shanthala Chits is registered under the Chit Fund Act of 1982, the Government of Karnataka. We are one of the most popular chit fund houses in Bengaluru, known for our prompt customer support and secure investments. Get in touch with us and start with an investment scheme. We will be glad to help you out with the right scheme that matches your needs.