Children’s Day: Teach financial wisdom to your children, start from this Children’s Day

Children’s Day Special :November 14 is the birth anniversary of the country’s first Prime Minister Pandit Jawahar Lal Nehru, which is celebrated as Children’s Day in the country. Generally, it is customary to give gifts to children on Children’s Day, but on this day it is equally important to teach financial wisdom to our children. In the changing economic environment, it is important for Indian parents to educate their children about financial independence and responsibility. If the understanding of savings, investment and wealth creation is developed in children from an early age, then not only will their lives become better, but they will also be able to become better and responsible citizens.

Lack of financial education

Financial literacy is not taught in most Indian schools and colleges. Therefore, many youth join jobs after leaving college, but are unable to become experts in their income, savings and investment management. This is a major lack of education which does not prepare them to face serious financial difficulties in life.

Also read: Discussion on increasing the wage ceiling limit of EPFO, what does it mean? With the help of example, understand what will be the effect on you?

importance of financial prudence

Most Indian parents are busy trying to provide an educated and secure future to their children, but are unable to pay attention to financial literacy. Children’s financial habits start forming from an early age. That is why it is important to educate them about financial independence so that when they grow up, they can take their own financial decisions and face financial challenges in life.

Also read: Top 5 Flexi Cap Funds: Top 5 Flexi Cap Funds gave up to 24% annual return on SIP in 10 years, what are their top 5 equity holdings?

It is important to make children independent and self-reliant

Indian parents leave no stone unturned in fulfilling the needs and desires of their children. But sometimes trying to provide a completely safe environment to children makes them overly dependent and lazy. When children get everything without any effort, they do not understand the importance of financial self-reliance. It is important to develop children’s understanding about the importance and responsibility of money right from childhood so that they can take financial decisions related to their lives independently and can adopt the path to secure their future.

Also read: NFO Alert: Subscription will open in two index funds of Nippon India this week, how suitable are these NFOs for investment?

It is important to avoid the habit of spending by taking loans

Due to the increasing facilities of purchasing goods on installments through credit cards and online portals, the habit of purchasing things by taking loan has increased among the people. Many times parents themselves also do this. If such habits develop in children too, they may sometimes fall into the trap of unnecessary debts. It is important to keep them away from such habits so that children can understand the importance of savings and long term financial security.

Start saving and investing from your first income

Generally people are late in understanding the importance of saving and investing. Whereas this is such a thing, the sooner it is started, the better it is. Therefore, we have to teach our children that they should start saving as soon as they earn their first income. If they implement this lesson, their life ahead can become much easier.

Also read: NFO Review: Subscription opened in two new schemes of UTI Mutual Fund, what is their specialty, invest money or stay away?

Prepare children for emergencies

A person may have to face situations like economic recession, job cut or loss in business in his life. Children should know how to face such difficult situations in life. Besides, it is also important to explain to them the need to prepare an emergency fund. So that they can face the future better.