Read in: 1min, Published On , 18 Nov 2019 By The Hindu
It’s time to have ‘money talk’ with your child
This Children’s Day, indulge in some money talk with your kids. After all, only you can shape their future.
Here’s what you can do:
The earlier you start talking to your kids about money, the better it is for moulding their financial personality. Simplify fi nances for them so that they start finding it fascinating.
Answer questions honestly
Even if you are going to regret telling your kids about your Debt or why you don’t have enough money to buy a PlayStation, you must be honest with them. Such open conversations are likely to develop a sense of caution in them.
While you understand your child’s needs, ask them about their wants and desires. With a specific goal in mind, it will be easier for you to teach them the importance of saving.
Encourage them to save money, show them the magic of delayed gratification and give them allowances for small chores.
When your child begins to understand the basics of money, let them have their investment.
Tip: You can start a Mutual Fund Systematic Investment Plan (SIP) on your child’s name. Since it is their investment, they will be interested in learning more about it and will also be encouraged to save more.