"ART OF AWARENESS LIVING" 108 CIRCULAR SERIES. CIRCULATE DAILY- MULTIPLY NEW FRIENDS.
Today all most all parents are pushing their children towards achieving various goals in academics, sports or extra curricular activities. But very many have totally forgotten to train their beloved children in the most basic need of life that is financial management. In the game of life, the role of game of finance plays a very crucial role. In fact the financial management is extremely essential in life for one's happy, healthy, prosperous and peaceful life. There are many low incomes, salaried people who are well settled with required comforts and leading contended life, with proper financial management guidance. At the same time there are many with high income, but ruined their life, suffering physical, mental worries, crippled in problems and made the lives of all near and dear, a hell, due to irresponsible financial mistakes.
Financial management for children is so crucial, that it saves your children from the various critical situations of unavoidably burdened EMIs, life styles beyond their income, daring into more speculations, unhealthy financial transactions, which ultimately lead them to inescapable vicious circle ,such as borrowing at high interest rates, credit card default, cheating banks, forgery, scams etc. In few other extreme cases, financial mismanagement leads even to rob, cheat, to any unimaginable crime they think fit. Ultimately, if nothing works out, there were many instances where people simply commit mass family suicide.
Like academics, Financial Management is also equally important in life. Every aspiring parent, anxiously wish that their beloved children to achieve respectable position in life to earn wealth and fame. But, you are only half way, if you aren't training your children financially, as they are liable for financial disasters. It is equally important to grow children right from the childhood to walk on financial discipline and steadily learn financial management for ever happy, prosperous and economically free peaceful life. Here are few financial management awareness tips for your children, for financial trouble free future.
CHILDREN IMITATE PARENTS: Children have a natural attitude of imitating parents and close relatives. It is the nature's natural phenomena. It is advisable to train children about financial management right from the childhood to inspire them. For that matter first parents must practice and suppose to become perfect guides. Parent's discussions and practicing economical methods, saving ways, steadily enters into children's minds.
GIVE THEM POCKET MONEY: There are some families, who do not have practice of giving pocket money for children. This attitude of parents will drag children to walk cheating and duping ways, to have money for their minimum needs of expenditure. You calculate the minimum required amount for weekly or monthly expenditure and give 20% extra, on that. You advice them specifically, to save that extra money in a kiddy bank, for his own emergency sake. Keep an unnoticed track on his spending and ask him the detailed spending account after the specific period. If he saves the extra amount, well appreciate and encourage, otherwise advice him properly..
TAKE HIM TO THE MARKET: Whenever you go to the market, take your child along with you, explain him to observe the product prices, comparing different products at different shops with respect to their prices, before buying. Then he will understand the market trends, raising inflation, importance of money etc.
ALLOW HIM TO SPEND ON HIS OWN: Child learns only on his mistakes. As long as he is not allowed to spend by himself, he can't learn. For early teens ask them to calculate their budget and give the money to buy their small needs like cloths, books, for weekly movie etc. But keep a watch on their spending. If they do any mistake, then advice them accordingly.. As long as you are not advising your child, feels proud that he is walking on the right way.
ADOPT ACCOUNTING: Accounting of every spending gives clear direction that where one is spending more or for unnecessary things. If parents adopt monthly writing accounts of spending, that pinpoints where, and they can minimize the wasteful expenditure. This will show the need and neglect areas. Even you explain your child to practice accounting expenses, steadily which will give clear idea, about important and unimportant things.
BUDGETING IS ESSENTIAL: Even for rich people also budgeting is essential. Budgeting helps low income and salaried people to maintain a balanced life with in their means and to provide a small savings for secured future or for any emergencies. Explain your teens the importance of budgeting and to implement it right.
INVOLVE CHILDREN: If one cannot learn from childhood, he will not learn perfectly. Involve your teenage children in buying grocery, small household articles etc. Let them pay news papers, telephone, electricity, water, society bills etc. If his interest and involvement is satisfactory, ask him to prepare a month family's budget. When you can believe him that he is fully trust worthy, even you can handover a month's budget sum and ask him to spend independently, by writing detailed account. With that, he will realize the value of money as well as will win your confidence.
NO SHORT CUT METHODS: Every child wants to grow rich very fast. Smart children want to grow rich at super fast speed; even at by adopting any shortest, illegal, immoral ways. For any success, it is always only one preferred way, that is the only one, right way. All other ways even though looks short cuts, all have great draw backs or later create various problems which causes unbearable miseries, ridicule losses and shame, which further forces for much nasty acts. Therefore, advice children the importance of peace of mind, which only gives steady growth, through right income.
TELL VARIOUS INVESTMENT OPTIONS: Tell the kids to save in kiddy banks. Explain the early teens to open a savings bank account and save. Let them learn depositing, withdrawal, using a cheque book, verifying the balance in their account, making a recurring and deposit accounts. For late teens, explain various options of investing, like investing in Post Office NSCs, various Life covering Insurance Policies, house hold, vehicle Insurance policies, UTI Schemes, less risk mutual funds etc. Successful man is he, who has maximum information. How much varied investment options you show to your teens, he will have so wide, suitable future options to exercise.
THEY LEARN WHEN THEY EARN: Children will learn the value, as well as importance of money, only when they themselves earn money. Not only that, it will enhance their own interest to grow in life steadily. So, allow your teen to work on any interesting vocational job. It is not shame, but a proud job, which will not only earn little money, but earns great value of money in your child. When he earns, he thinks twice to spend. In advanced countries, students work in spare time, continue their education on their own earnings.
SEND THEM FOR TOURS: Many parents, particularly from middle income, low income families, try to avoid sending their children for tours. In fact it is a very good opportunity, to teach them the importance and value of money. Since no family member is present to look after his requirements, while on tour, except the little pocket money given to him, he is very cautious to protect it and spend it sparingly until he returns home. Whenever child gets opportunity to go on tour, excursions, sports trip or other competition visit, definitely send him with adequate cautions.
Child can develop into a whole some personality, only if he has sound physical, mental, academic and financial health. As a responsible citizen, moreover as a affectionate parent, apart from grooming your child academically, healthy, discipline wise, train your beloved child right from childhood for sound financial management, to escape from any future financial disasters.
FINANCIAL MANAGEMENT AWARENESS TIPS FOR CHILDREN