There are many life skills that should be taught to kids at an early age in order to inculcate good habits for life and teaching finance is one of them. A kid might not use trigonometry in the future but it is certain that at one point he or she will have to learn to manage money. In the 21st century, with digitalization of money, it is quite possible that kids today will have to deal with “money-matters” much earlier than any previous generation. 

It is crucial to teach kids the importance of saving early on. It sets out a message to them that they are responsible for their expenditures. It helps them navigate tricky situations and overcome financial obligations, giving them a sense of independence. In most societies, the culture of piggy bank is encouraged and it is a great way of introducing kids to finances. Concepts like these allow early access to the system of knowledge that ensures an individual’s financial well-being. 

Certain things cannot be learned theoretically and need to be approached practically. Finances are one of those disciplines that can only be learned through lived experiences. It is a good idea to allow kids to experience the exchange of money first hand. Kids acquire habits, ideas, and attitudes from their parents and it is advisable to allow them to learn through day-to-day participation which can include anything that allows them to understand the basics of commerce from grocery shopping to withdrawing money from an ATM.

In today’s time and age, where not just kids but also adults are susceptible to online scams, it becomes crucial to generate awareness against scams among the younger generation to safeguard their interests. It is important that they learn to make the distinction between socially acceptable norms and illegal practices. It will also enhance their sense of judgment and improve the individualistic core value system. 

When we look at our kids, we need to realize that we are not looking at young minds but also mature and responsible citizens of the future. They will lay the foundation for tomorrow’s economic and social system. Financial literacy is a life skill that ought to be imparted not just at home by family and relatives but the State too should take some measures to ensure wealth-nurturing and managing courses at the school level. Many well-to-do experts and professionals from varied fields lack basic banking and financial knowledge. The only way to tackle this shortcoming in society is by educating the parents and teachers on the importance of finances for their kids. 

As guardians, parents can take the initiative of utilizing many schemes and financial products for their kids from an early age. A Public Provident Fund or PPF is the basic investment model that encourages a habit of saving up for the future. There is a Sukanya Samridhi Yojana that is specially meant for the girl child. It enables the girl child to gain financial independence from an early age, boosting her social status and her self-confidence. There are also some long-run investment schemes that include a Systematic Investment Plan or SIP. 

While you are at it, browse through our online comprehensive courses specifically curated for kids. Never stop exploring!