Did you know that Taimur Ali Khan and Yash Johar had a playdate a few days ago? We all know who Taimur is. Yash is Karan Johar’s son. With today being Children’s Day, they will probably have another playdate, which the entertainment media will duly inform us about.
But what would be interesting about playdates of celebrity children is the things that they would be talking about. We have always wondered if filmstars talk to their children about the value of money. They should, of course. Much like non-celebrity parents should as well.
Saving and investing is important. We know this. We also know that the sooner we begin, the better off we would be. Wealth management experts have advocated an early start to one’s investment journey as an important part of fulfilling one’s financial aspirations.
But how early should one begin? Childhood, maybe.
Teaching children the value of money is an integral part of parenting. Children need to understand that money doesn’t grow on trees; that money shouldn’t be taken for granted. That their parents work hard for the money they earn.
Parents try to instil this value of money into their children in various ways. Some teach their children to use their pocket money consciously. Some make their children do household chores as a way of earning a toy or game they want. Some tell their children to budget their spending and save a little bit in a piggy bank.
There are many ways to teach children about saving money and spending it wisely. And here’s a neat way to teach them about the benefits of investing it–ask your children to save money and add to their savings if they save it for a good period of time.
- Your daughter gets Rs 100 as pocket money every week
- She saves Rs 30 out of it every week
- She has Rs 120 saved at the end of a month
- You add Rs 30 to her kitty as a reward for not spending all of her pocket money
This is how you can teach your child how investing works. When money is saved, it becomes more money. It might seem like magic to a child, but then, investing seems like magic to grownups also quite often. It does, doesn’t it?
But we digress. The point is that children will be incentivised to save when they are rewarded for it. And at the same time, they also learn a little bit about why mommy and daddy invest. Win-win!