Research says when a kid is deprived of certain things as a child, they tend to over do that activity as an adult, perhaps to make up for it. So, when you deprive or overregulate the money you give your kids, they might tend to overspend as adults when they grow up or not know how to spend their money effectively.
Many children don’t have the patience to wait for the right time to buy things. They also don’t realise the market price for certain products. The concepts of interest, deficit, credit seem alien when people actually step into independent living.
As a parent, when did you learn about these financial concepts? Was it easy for you to manage your funds when you stepped into real life?
What would you want to change about your parenting when it comes to teaching your child about finance?
Life today has changed drastically from what it was 40 years ago. The parents of today were children who were a part of a completely different Indian economy where spending money on basic necessities was the most important objective. But, in today’s world, the necessities have changed. With the current economy and the technological advancements, we are face to face with new necessities. In such a scenario, how do we make the adults of tomorrow financially adept?
It is very important to inculcate the value of money in the minds of children. But is controlling the pocket money, the only way to do that ? What if we gave a little financial independence to the kids, with a budget for a week or a month? How would that work out? Children today are becoming more independent at earlier ages as compared to the freedom their parents faced. With technology and social media, children are engaged in not just entertainment but also earning money through innovative ventures like the current rise of thrift stores, art accounts, social influencers etc on social media.
A lot of arenas lie ahead to explore. Sometimes we need to experiment and educate ourselves to do the same for our children! Don’t you think?