If there’s one thing 2020 has taught us, it’s that life is unpredictable. Life throws you a curveball, just when you think; you have it all figured out. The pandemic may have come as a huge shock and the results that followed has only emphasized the need to have a safety net when it comes to cash-flow and emergency fund. 

If only the school curriculum had taught us something as important as financial planning, managing finances during disasters and crises. Sadly, schools even today do not teach something this crucial to kids. As much as sex education, emotional intelligence, social dynamics are important, so is financial management. 

Learning the lessons, from this pandemic, there is no better time than now to educate kids about financial planning and money management under all circumstances.  

1) Keep It Simple & Silly Rule 

Apply the keep it simple and silly rule when imbibing financial literacy. Make it fun, relatable and doable for them. Teaching kids the simple acts of saving, sharing and counting, turns into a lifelong habit automatically. This will also give them an opportunity to grow from their mistakes without having to pay big penalty or price. They also learn skills such as managing situations, being accountable for their own mistakes, decision-making. 

2) You learn by doing 

The best way to teach is by practice and asking them to pay it forward. Introduce financial decision making in day-to-day routine. Give them a budget and ask them to make their own choices at the supermarket. This will teach them little things like understanding the day-to-day cost and saving costs for special needs and how to spend in a given budget. It will help them to prioritize needs over wants. 

3) Break the norm

Many women in India rely on their husbands to manage money. The only thing they know about their family money is that the husband is managing it all. Even though things are changing, and millennial are rapidly adapting to their financial accountability – there is still a long way to go. Break the norm. Start teaching financial management to kids, especially girls at a young age. Teach her the importance of being financially secure. 

4) Reward the Actions 

Earning money can be a super fun task and saving the money can be equally rewarding. Pay them a dedicated chore budget that gets them excited and disciplined to perform the task they are responsible for. Teach them to save this money, to buy a toy, experience or anything they want when they have managed to save enough. Moreover, you can also imbibe the joy of giving, by organizing a trip to an orphanage or any other charity run.  

For every mistake they make, they will learn how to navigate the low and high tides of finances in life. All teachings need to be kid-centric, easy and more importantly age appropriate. Introducing and practicing the concepts of earning, saving, spending on a budget, giving, sharing can help your children learn the art of financial security, management and planning at a young age. This will help them in the long run and you will be relaxed knowing you’ve imparted a valuable life lesson to your kids.