15 Jun Significance of financial literacy for budding learners
Saving money is one of the critical aspects that every individual needs to learn to ensure a secured financial foundation. And the truth is, one gradually learns the art of saving money experiencing trials and errors with time. Nevertheless, it’s a practice that is not taught in a particular subject and is rather more like a skill that even today’s generation needs to acquire.
Being among the top schools in Rajpura, we believe that parents act as role models for children, and hence, they can consciously prepare their kids to value money and spend it wisely as they grow. Below listed are a few things that will hone financial literacy in students.
Wants vs Needs
Explaining the difference between wants and needs is the first step towards teaching your kids the value of money. Describe them well the necessities of a human such as a shelter, food, and clothes and also throw light on the desire that a human holds even after the fulfillment. Speak in examples like, why is it necessary to buy excessive toys when you already have them in sufficient quantity? Is it worth spending? This will help them take practical decisions and save money.
Start with a piggy bank
The most approachable way to teach your kids about the importance of money is by providing them with a piggy bank. Tell them to fill the piggy bank with money or any kind of allowance that you provide and ask them to note down their daily expenses. And finally, discuss their overall expenditure at weekends. This activity can be an eye-opening experience for them as it will help them know about their spending pattern and use money in an organized manner.
Lead by example
By the time children are seven years old, they develop certain habits as per the lifestyle. They constantly watch you and your every activity right from taking out cash and paying for something or swapping down the plastic at times. Therefore set a healthy example for them by spending on the right things and not letting them buy anything that they want. They will follow what they are learning now and enable organic ideas for money-saving in the future.
Leave room for mistakes
Mistakes are not harmful. A human being makes mistakes and learns through them. The same applies to children also, who are prone to make several mistakes while growing up as teenagers. And financial imbalance being one of them. Making these potential mistakes and taking the charge of the same will have an impact as a lesson for the future and make their money-based application well-defined.
Involve them in discussions
Don’t hesitate to involve grown-ups in your financial discussions. Tell them about your plans or the current financial status of the family and know their views on the situation. If you are thinking of investing money in a property, tell your kid about the lawful transactions that the process requires. Similarly, if you are buying a vehicle, ask them to search for the options in the budget bracket. This will help your kid assess the complexities linked with financial concepts.
It is essential to start conversations about money from the child’s initial years as these discussions will make them responsible for the spending. Make them set financial goals and let them know that they can always have a dialogue with you regarding money. We, at Carpe Diem International, the best school in Rajpura, firmly believes that your teachings will pay for the best interest of your kid and the value of money will remain imbibed in their minds.