skilledwise
by on November 19, 2022
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In India, there are approximately 30% of children have great knowledge of financial literacy. The development of knowledge about financial literacy among kids is essential to promote saving habits and introduce them to different financial principles. There is a wide range of courses and programs available for kids to learn about Financial Literacy for Kids and money. Parents and the management of different educational institutions can include the concept of financial literacy in the regular curriculum of their children.

Why Is It Essential To Make Your Child Financial Literate?

  • As per the study by the National Centre for Financial Education, only 27% of Indians are financially literate.
  • According to the report submitted by BRICS, India ranks the lowest in terms of financial literacy.
  • One of the surveys of Standard and Poor suggests that most consumers do not have general know-how of compound interest, credit, and many other important concepts.

The only way to overcome the above-mentioned facts is by making every child financially literate. Yes, we all give our children a piggy bank so that they can learn to save and invest during their time of need. But there is a lot more to it that needs to be taught early so that your child can understand the concept of the financial market and take the right decisions.

When children become financially literate, it has a major impact on their families as well. It allows them to contribute to the concept of saving money and taking the right step to managing their finances. This shows how making your child financially literate can be of great help. If you are still not convinced take a look at the below-stated benefits:

 

Tips To Make Your Kids Financial Literate

There are different ways to teach kids about financial literacy. Some of them include the following;

Differentiate between needs and wants: At first, parents and teachers need to provide kids a significant knowledge about the difference between needs and wants. If your kids will have a great knowledge of the difference between needs and wants, it will be easy for them to make value judgments about their expenditures in the coming period. Besides, kids will also have an understanding of managing finance to promote savings.

Provide opportunities to earn and spend: Besides, the use of different money-earning and spending activities can aware kids of the concept of financial literacy and existing principles. For example; you can ask your kids to finish chores and earn some pocket money accordingly. As a result, it will be easy to provide kids with an understanding of how to use the available finance. By offering opportunities to earn and spend money, it will be easy for parents to teach their kids the value of hard work.

Offer a deep understanding of the financial literacy concept and related topics: Most parents want to teach their children everything about finances that they know in one go. This is very wrong. You need to offer a deep understanding of financial literacy concepts and related topics frequently. When your children learned a particular topic, you can come to the next topic to avoid confusion and smoothen the learning process. This requires parents to introduce each concept of financial literacy to their children for a better understanding of financial principles and concepts.

While following these methods, parents need to remain open about their discussions with children. It is because open discussion with parents supports their learning effectively in comparison to narrow discussion. The knowledge of financial literacy concepts enables your children to participate in financial quizzes and competitions to show their knowledge and understanding to win the prize.

Related Blogs:

https://skilledwise.blogspot.com/2022/02/reasons-to-opt-for-online-financial.html

https://webyourself.eu/blogs/15873/How-does-Online-Financial-Literacy-Program-for-Kids

https://morioh.com/p/396d91526830

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