When children learn to manage money at a young age, they are better prepared to manage finances later in life
While we recently observed World Literacy Day on 8th September, it is important to understand that financial literacy too is an important life skill. Yet, it often remains ignored at homes and schools. When children learn to manage money at a young age, they are better prepared to manage finances later in life. Teaching money management in schools could be an idea worth exploring.
How about teaching money management in relation to subjects taught in schools? Wouldn't it be an interesting idea?
Money Management and Mathematics – Basic mathematics concepts such as addition, subtraction, multiplication and division are essential parts of the process of managing money. These concepts will help children in budgeting and tracking their expenses. They will understand the simple relation between income and expenses and the importance of documenting the same. These are the first steps in helping children to manage money better.
TRACKING EXPENSES
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| Basic mathematics concepts such as addition, subtraction, multiplication and division are essential parts of the process of managing money |
Money Management and Creativity – While creating a piece of art, an artist depends heavily on the judgement, preference and emotional intelligence. There is no defined set of steps or processes that an artist follows. In the same way, the approach to money management can differ for individuals, as it depends a lot on human judgement, pattern reading and emotional intelligence. While developing the ability for creative thinking in the child, the key is to explain, guide and then let the child practice it independently. Teaching money management follows the same path, the child needs to be explained the concepts, and then given allowances which she/he can manage independently.
Money Management and Sports – Sports teaches children to become disciplined about their diet, exercise and training regime. This discipline adds infinitesimal positives that graduate them to excel at the highest level in sports. Money management is also about inculcating discipline in practising good money habits such as categorizing and budgeting expenses, saving and subsequent investments.
It was great to see schools celebrating Teacher's Day in their own unique ways last week. I would be delighted, if schools make "money management" a part of their process of imparting knowledge. By doing so, they will immensely contribute to creating a generation of financially prudent young Indians.
The writer is founder of Slonkit
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