What Is the Right Time to Teach Kids about Money Matters?

Financial inclusion is an extremely important part of life for every person and her/his family. This kind of inclusion takes care of the family’s complete requirements including those of children as well. When it comes to imparting financial knowledge to children, what is the right time for making a beginning? Well, the answer is that the right time for teaching kids about money matters varies with age. What you teach a pre-school or kindergarten kid is not the same what you can teach a teenager. 

The factor of teaching kids about financial inclusion is something that counts as an important factor in life and therefore, it must be ensured that the right kind of knowledge is imparted so that a stable base can be built for the future. While choosing an insurance plan for your child, the primary thing is to ensure that there is sufficient coverage and no shortcoming of offered protection exists. 

Following are the right kind of steps that you must take so that your kids can develop a proper knowledge about money matters that can help them make informed decisions later in life:

Start early: 

No age is too soon to teach your child about the importance of saving and why financial security is important. The time for financial planning begins as soon as your child reaches an age where she/he can comprehend the basics associated with savings. At this age, simply inculcating the habit of putting aside certain savings in a piggy bank can go a long way in deciding the long term habits that the child will learn.

Involve children in financial activities:

This is very essential. Involvement means setting up certain small financial pursuits like making the children observe over-the-counter transactions in a shop or elsewhere. Taking your children along when you visit a financial institution and letting them observe the proceedings is equally essential in the same sense. This makes the child develop a small understanding of the fiscal basics at an impressionable age and paves the way for their financial intelligence later in life.

Handing over responsibilities with time:

What this means is simply that as your child grows and becomes mature enough to handle transactions on her/his own, you must understand the need to let her/him handle a larger part of the responsibility. This means letting them make monetary transactions on their own with your controlled influence. This will imprint a strong understanding of financial transactions and will make them realize the value of financial responsibility and the role of discipline. Therefore, it paves the way for a maturity of financial sense where they can take their own independent decisions with a wider and responsible approach.

HDFC Life offers HDFC Life YoungStar Udaan – a child specific plan that offers comprehensive financial benefits for your child so that you can give wings to your child’s dreams and aspirations. 

Related Articles:

• Make Your Online Term Plan Your Family's Monthly Pay Cheque
• Income Tax on Pensions: Are They Taxable?
• 5 Tips To Make The Most Out Of Your Retirement
• What is ULIP Plan?
• What is the Age Limit to Buy a Term Insurance Policy?
• Calculate and See for Yourself How Starting Young Gives You Lower Premiums

ARN: ED/12/19/17049