When it comes to imparting money lessons to kids, it is always better to start as early as possible. Parents need to teach children basic money concepts as financial education isn’t part of the curriculum in India yet. Personal finance is undoubtedly one of the most important conversations that parents must have with them. Radhika Gupta, MD and CEO of Edelweiss Mutual Fund has shared 5 precious thoughts about money. She explained the importance of money while emphasising its limitations.
Five money lessons you should teach your child
Purposeful expenditure
There is a true use for money. It makes the small and major things in life simpler and allows you to realise your aspirations. “Money does have a real purpose. It enables you to fulfill your dreams, it makes the little and big things in life easier. It adds comfort, and it enables moments of joy, for you and the people who care for you. So earning money and saving money is important,” Gupta wrote.
Money vs worth
You are not defined by your money. Never allow it to undermine your confidence or sense of worth since it has the potential to do so. Gupta wrote, “Never let it affect how you are and behave with others either, because people are more than their bank balance.”
The right monetary attitude
The most crucial money attitude is gratitude. One should be grateful for what s/he has received from parents or in inheritance as each generation has worked hard to create a fortune. “Gratitude is the most important money attitude. You have more than I did, and I have more than my parents did, because each generation has worked hard. Use what you have to take another leap, to take risks, to create opportunities that we never had,” wrote Gupta.
Not greedy for money
One of the highest-paying businesses in the world is finance, but the biggest and brightest suffer severe failures due to greed. “Greed takes you down. Finance is one of the best-paid industries in the world, yet the biggest and best fall hard because of greed. Know the value of enough and never take a shortcut to earn money. It can never be worth it,” tweeted Gupta.
Comprehending your monetary roots
According to Gupta, the real asset is a person’s own talent on which s/he should capitalise. “Your parents have made a living by handling finances. You are competing in one of the best marketplaces in the world, India, thus putting your top priority on managing your talent, which is your most valuable asset. Learn to read, write, reflect, struggle, rise, dream, create, and construct,” added Gupta in another tweet.
In the end, Gupta says the child can learn to manage money much later. “ It isn’t that hard:). And when you do, mutual funds will help you and I hope you will believe they are Sahi!,” she tweeted.
Starting early with personal finance education is crucial for children. By teaching them these fundamental lessons about money, children can develop a healthy attitude towards finances, understand the value of hard work and gratitude, and prioritize their talents as their ultimate assets. These lessons lay a strong foundation for their future financial success and well-being.
So, not only for kids, but it is also very important for adults too to differentiate between need versus greed, and values versus valuation.
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Updated: 13 Jun 2023, 01:58 PM IST