Money lessons for children: One of the important lessons, and probably the best, that you can try to teach your kids in this festival season is about the significance of money in life.
The festival season is considered a good time to teach some valuable life lessons to kids. One of the important lessons, and probably the best, that you can try to teach your kids in this festival season is about the significance of money in life.
In past, people had little access to money. For children, the opportunities to spend were also very less. Then elders used to give coins as blessings, or as a token of good fortune, to kids during festivities.
The tradition of giving gifts to children during festivals continues even today. However, the nature or the type of gifts given to children has changed. Today, it may be in the form of some gadgets, new clothes or games. Some families continue the tradition of gifting money to children.
Unlike the previous generations, present-day kids are exposed to too many distractions. Now they have access to so many avenues of spending money that, if not taught early, they may never understand the importance of savings.
Experts say that there are many ways you can use the festivals to teach some money lessons to children.
Pallavi Tipparaju, Co-founder & Chief Product Officer at Pencilton, told FE Online, “In India, festivals are all about spending quality time with family and friends, new clothes, good food, decoration, and gifts. A lot goes into making a festival into a celebration and this makes it the best time to teach kids about the value of money.”
She suggested that in the month leading up to the festival, you could encourage kids to save money to buy gifts for their friends and cousins.
“You could also ask them to make a list of items required for the celebration and to estimate how much money it would take to buy those items. Another way to teach kids about budgeting is to give them a fixed amount of money and let them allot it to things they value the most,” Pallavi said.
Festival season is a time to cherish, enjoy with family, and give gifts. Sometimes such aspects overshadow other purposes that can be fulfilled during the festive season.
Ankit Gera, co-founder, Junio, said that parents tally up the gifts for their children but at the same time, they can teach important lessons about money. “Festive season offers a plethora of opportunities to teach kids important financial lessons, such as saving and budgeting, as well as the value of every penny earned,” he said.
“The money they earn in the form of coins of blessings can be used to teach how important it is to save money and need to spend it diligently over important necessities. This will not only foster the culture of savings but also make kids money-wise,” he said.
According to Gera, some tips can also help monitor the financial behaviour of kids at a very young age. “For instance, while children learn that money is needed to buy things, the concept of essential and non-essential expenses should be introduced too.”
Parents can even set daily tasks for their kids and tie them with perks to inspire them to earn some extra money if they want to spend more money.
“Instead of giving cash, kids can have their own ‘Card’ which not only gives them a feeling of managing their own finances but parents have oversight of all the spending,” Gera said.