Warm regards,

Anand A Devchakke

2. Controlling the impulsive spending habit -

We teach children to love each other and care for each other.  One of the primary benefits of teaching financial literacy to children is to teach them to love and care for money. This will help kids to understand the value of money and instill the responsible spending habits, helping them to avoid debt trap in future. They need to learn to differentiate between needs and wants, setting the stage for a lifetime of wise financial choices.

3. Developing Saving and Investment Mindset from childhood -

Most of the parent’s complaints about their children spending habits. Because of Social Media Impact and Television programs children’s are becoming the victims of TV advertisements, Promotions and aggressive marketing of child focused products. Financial Literacy encourages children to develop a saving or investment mindset by understanding the value of money. The concept of earning interest excites most of the children.  The primary principle of financial independence Income – Saving = Spending helps them to save for the future and spend wisely. This habit not only provides a financial safety net but also fosters a sense of financial security and freedom.

4. Preparing for Future Financial Responsibilities - 

Change is a mantra of life. For children from school or college expenses to buying a home or starting a family changes their role and responsibilities. Financially literate children are better prepared to navigate successfully through these life stage changes and challenges.  They understand how to plan for significant life events and are more resilient in the face of unexpected financial challenges.

5. Overcoming the economic challenges and building the wealth -

We can divide the society into 4 categories basis on their income level.  1) Poverty 2) Need Based 3) Comfort and 4) Luxury.  We all work very hard to ensure better life style and standard of living to our family.  Financial Literacy especially to poverty and need based families children can play a significant role in helping them to understand the saving options and answering the question, how we can save money with minimum amount also. By equipping children from all backgrounds with the knowledge and skills to manage their finances effectively, we can contribute to a more equitable society. Financially literate individuals are better equipped to break the cycle of poverty and build wealth over time.

6. Developing the healthy relations in family by strengthening Family Bonds - 

Encouraging open and positive financial discussions in family by involving children also in some of topics can bring families closer together. Because of this practice children understand their role and value in the family helping them to build a responsible and caring mindset for family and finance. It provides an opportunity for open and honest conversations about money, goals, and priorities. Parents can share their financial experiences, impart valuable lessons, and involve children in financial decision-making, fostering a sense of teamwork and responsibility.

7. Enhancing Academic Achievement

Financial literacy is not limited to managing money; it also enhances academic achievement. Children who understand financial concepts often perform better in mathematics and problem-solving, skills that are valuable in various academic subjects and career paths.

8.  Digital Financial World: Making easy and safe

In today's digital age, most of the transactions are happening through digital tools and payments. Such as online banking, Paytm, NEFT, UPI, Gpay or Phone Pay. Teaching children financial literacy includes educating them about online banking, digital payments, and the risks associated with online financial transactions. This knowledge is essential for safeguarding their financial assets and personal information.

Conclusion

In conclusion, the importance of financial literacy and Awareness for children cannot be ignored. It is a kind of gift that empowers them to make informed financial decisions, build a secure future, and contribute to a more to the prosperous society. Parents, educators, and policymakers should recognize the value of financial education and work together to ensure that every child has the opportunity to develop these essential life skills. By investing in the financial literacy of our children, we are investing in a brighter and more financially secure future for all.

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