It is quite important to teach children the importance of money from a young age. I have been talking about money management with my daughter for a long time, inculcating the values and teaching her the basics of it.
As children, we have all had piggy banks at some point. Where we would put in money received from adults as gifts or save a little from the pocket money we would get. I, too, gave my daughter a piggy bank and told her to put a little sum in it. So, whatever she manages to save from the pocket money I give her or if she has received it from someone during special occasions, whether single or double digits, she puts it in her piggy bank. After a period, she would have quite a lot saved. That way, children can understand the importance of saving. Money saved is money earned – today she understands the concept of saving. We also used to play money games like Monopoly to teach her how to count money.
Prioritisation is also important — needs over wants. I have always explained to my daughter that when it comes to spending, she needs to focus on her needs and what is necessary at the moment. You can also include your children in the monthly budget planning for the home. Take them grocery shopping and let them learn by observing — how you spend and what you spend on.
Parents should also teach children the value of working for money. Like, my daughter knows her parents work and that’s how they earn money. She knows nothing comes free in life. She understands the correlation between hard work and money. I have always told her — if you want something, you got to work for it. There are no freebies and if you want to be independent and buy something, you got to earn for it.
Whenever I give my daughter money, say for school lunch, she makes it a point to return the unspent amount. She is at an age where she understands calculations and the exchange of money.
If your child is at an age where s/he understands, you give your child money and ask them to give you a low-down on how they spent it, and how much they saved. Tell them to give the change back (or put it aside in their piggy bank; that can be their earning for running an errand). This way you can teach them the value of working for money. You can reward them, spoil them you know, but don’t overindulge them.
Giving them little money to spend also gives them a sense of freedom, which I feel is necessary. That they feel independent and responsible because they know they need to go back to you and explain where the money went.
Money lessons need not be boring. Today, there are various apps and games available through which finance management can be made fun for children. It may take a long time for a child to understand the concept of money but slowly, they’ll understand. As a parent, you need to be extremely patient.
(Riddhima Kapoor Sahni is a jewellery designer, and daughter of veteran actors Rishi Kapoor and Neetu Kapoor)
