Money Management – Let kids know the true “value” of money

The term “money management” has come into sharp focus over the past few decades. It is not surprising though given the rapid economic progress witnessed in India and in several other parts of the world. Top CBSE Schools in Coimbatore always insists each child knows the true “value” of money for leading a happy life. The advent of the internet and its rapid penetration bringing along with the e-commerce boom, has meant that children are being exposed to digital business transactions at a young age these days. Parents therefore, also need to ensure that their child knows the true “value” of money for leading a happy life. Let us take a closer look at some of the steps that can be taken to educate them about money matters.

Use the curiosity factor

It is a well-known fact that a child’s mind is always curious. It is always ticking over with ideas and observations. Use this factor to educate a child about money. Why not start with the currency notes themselves? The younger ones can be taught the basics. For example, you can teach them about the various features so typical of currency notes, the different denominations, currencies of different nations, etc. For the older kids, you can always give them a slightly more difficult, yet fun exercise. Why don’t you ask them to delve a bit deeper into history and come out with a short essay on the evolution of currency in different parts of the world? And guess what will be the prize? What else but a small addition to your kid’s pocket money!

“Respecting” money

Though the children study in one of the Top CBSE Schools in Coimbatore they should know to respect money. We all know that there are no greater role models for children than their parents. A lot of time children tend to just copy their parents. One of the best examples that we can set is to show children how important it is to “respect” money. Every currency note or coin needs to be respected irrespective of its denomination. The way you neatly keep currency notes inside a wallet speaks volumes about how you respect money. Make sure that you are setting a good example to your kids. Crumpled or torn notes bulging out of wallets or your pockets doesn’t make for a good sight. Scribbling something on notes is also a strict no, no.  Not for nothing do they say what goes around, comes around. Teach children that it is important we treat currency with respect. 

Incentivize good behavior

Behavioral experts have been telling for years now that one good way to inculcate good habits in children is by showing them that good behavior will be rewarded. This can be used to drive home the point that nothing in life comes easy and you need to work hard to attain certain things. For example, if your kid wants that latest model cycle tell him that it will be his provided he comes out with flying colors in his latest school project or gets a coveted ‘best student’ award during the annual day celebrations. This will make realize the importance of working hard to attain things in life. This will make them realize what “earning” something that hard way is. 

Prioritizing purchases

Ideally children should be taught from a very young age about prioritizing their purchases. It could be a dress, toy, game, bicycle, etc. Teach them about how to prioritize each purchase. Tell them that what they are going to spend on a dress is equal to the monthly income of some families. This will help in developing a sense of compassion and responsibility in them. They will also realize the true value of money and spend responsibly. 

Take them to the stores

There is nothing to beat hands on learning. Get your children involved in buying the monthly groceries. Take them to the stores. If they are very young, let them start by exploring the products that they need. Take for example noodles. Let them go around and see the packs. Ask them to check out the price of different brands. For the preteens too it would be a good exercise to trigger their inquisitiveness. It is bound to raise their awareness about the kind of “value” money brings in. They will also get to know about other things in a product such as its quality, performance, branding, etc. Its realistic indeed! Value of money in day to day activities are also taught in the top CBSE Schools in Coimbatore.

The digital generation

As the world becomes increasingly digital, it is but natural that our kids too adapt to the changes. Taking them to the ATM would be a good way to start. Let them get familiar with the working of the ATM and its usage. Although it is decreasing by the day, a visit to a bank will also be helpful in the kids getting to know the typical kinds of transactions that take place in one. 

Given the ecommerce boom, it is again but natural that we need to give our children an insight about online transactions. Teach them the basics involved in online transactions. This knowledge will hold them in good stead when they grow up in the digital world which is introduced to kids now a days as digital classrooms enabling a perfect digital campus

Focus on career

While children need to teach about money management, they should also be made to realize that at their age, they should be focusing more on their career and nurturing good work ethics. Let them realize that once they are focused on their studies and career, money is bound to be an automatic byproduct, sooner rather than later. At TCIS, one of the Top CBSE schools in Coimbatore, it has always been our endeavor to provide “holistic” education. Money management is perhaps one of the essential key skills that a person needs to learn and that too at a young age. We have created special activities for different grades for the students to get an understanding of the value of money – Equilibrium: Making of young TYCOONS. For the lower grades, for example, we have activities designed for them to get acquainted with the typical features and denominations of physical currency. 

Similarly, activities have also been designed for the higher grades to get an insight into digital transactions, which has brought in revolutionary changes in the way we shop and conduct business. This helps a lot in Bringing out the entrepreneurial traits in children.

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