Why is it important to start a money conversation with your child?

To let a child understand how to manage money and to make him/her capable of doing it, you should engage him/her in money related conversations and show him/her how you are practically doing it.

Why is it important to start a money conversation with your child?
Unless a child visits a shop, buys goods and pays for it, he/she will never realise the importance of doing calculations in classrooms and get accustomed to shopping.

Providing bookish knowledge is not enough to make a child self-sufficient. For example, a child may learn calculations in Mathematics class and do illustrations on how much to pay for goods and how much change a shopkeeper would return. However, unless a child visits a shop, buys goods and pays for it, he/she will never realise the importance of doing calculations in classrooms and get accustomed to shopping.

Similarly, to let a child understand how to manage money and to make him/her capable of doing it, you should engage him/her in money related conversations and show him/her how you are practically doing it.

“One thing that we should start in conversation with our kids is about money. As we all know skills are very important for kids to learn while they are growing up, money and finance management is equally important. Knowing what happened during the pandemic, what financial issues people have gone through during this period it becomes more curtailed for us to start the conversation with the coming generation about financial literacy,” said Prashant Sawant, Co-Founder of Catalyst Wealth.

“It’s our responsibility to make sure our children should know basic things like budgeting, investing, returns and saving. These terms will help our children a lot in the future. As the world is changing the prices of things will also change and will make life of the future generation more difficult,” he added.

“The need to know how to save now is important so that they can enjoy their future. Understanding the stock market and knowing where and which stocks to invest in will give them a good return which they can use in future to achieve their goals in life. Learning budgeting will help them to improve their management skills. With budgeting they will understand what their needs and wants are. Cutting down on which things will give them more savings and what else can they do to save more and invest, to make more money,” Sawant further said.

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