“If you don’t understand the language of money, and you don’t have a bank account, then you’re just an economic slave.”
John Hope Bryant, CEO, Operation HOPE
Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting and investing.
Today’s generation are tech savvy and knows how to deal with latest gadgets however don’t know how to handle their own money. Most of the youth today ends up losing money because of lack of financial literacy.
Kids can learn to save money from these tips-
• DISCIPLINE OF SAVING Young kids don’t understand that there’s so much money you have each month to put down on discretionary purchases. The concept of saving their money in their piggy banks helps them to maintain a discipline of saving.
• SHARING OF EXPENSES If it’s not a special day, tell them that they must pay half the cost for their things. They’ll learn that they must save up their allowance to make bigger purchases.
• HAVE THEM TRACK SPENDING Part of being a better saver means knowing where your money is going. If your children get an allowance, having them record their purchases each day and let them think how much they’re spending and how much faster they could reach their savings goal if they were to change their spending patterns.
• LEARN FROM THEIR MISTAKES Part of putting kids in control of their own money is letting them learn from their errors. That way they’ll know in the future what not to do with their cash.
With these tips your child can become intelligent while spending money along with saving money. Allow your children to learn about money, regardless of their age. Nowadays as children are already tech savvy, they can also learn more about financial literacy online.
Yashvi Bhandari is a student of Grade 8 Bright day school CBSE Vasna, Vadodara.She is from Rajasthan. She is an avid reader, graceful dancer, an artist and loves to try new cuisines.
