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How To Teach Your Children Financial Literacy Groww

To teach children financial literacy, parents should: 1. Give children a monthly allowance and let them decide how to spend it, increasing it yearly. 2. Play strategy board games that teach money concepts and investment skills. 3. Discuss wants vs needs and have children set savings goals to teach patience.

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Palikila Srikanth
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141 views10 pages

How To Teach Your Children Financial Literacy Groww

To teach children financial literacy, parents should: 1. Give children a monthly allowance and let them decide how to spend it, increasing it yearly. 2. Play strategy board games that teach money concepts and investment skills. 3. Discuss wants vs needs and have children set savings goals to teach patience.

Uploaded by

Palikila Srikanth
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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How to

teach your children


financial literacy?
1
Give monthly
allowance
Set up a monthly allowance for your children and let
them decide what to buy and how much to spend from
it. Add extra once in a while in terms of rewards and
recognition and increase yearly within reason ( just like
an annual raise at a job).
2
Play strategy
games
Board games like Monopoly, Game of Life, Business,
Payday, and Stock Exchange can effectively impart a variety
of tips and teach concepts related to money. Strategy board
games such as Settlers Of Catan, Splendor, and Cacao are
great for teaching investment skills.

MONOPOLY
3
Set goals for
savings
Discuss wants vs. needs with your children. If they
want an expensive toy, they will have to save to buy it
later. This will not only teach them the art of saving but
also to keep patience and not rush to have the things
they desire.
4
Have review
sessions
Ask your children to write down everything they spent in
a daily diary and review it at the end of every week/month.
This will help them understand how one high expenditure
can impact the weekly/monthly budget.
5
Learning while
shopping
A fun yet healthy habit is to take your children grocery
shopping regularly. Before going shopping, make a list and
ask your children to make one too to avoid overspending.
While at a mall, it’s important to not give in to your kid’s
whims and fancies. Help your children weigh all the factors
that go into a purchase decision. This will be a crucial
moment to search for discounts or wait for a sale or
save to buy that item later.
6
Be open about your
own finances
For true financial understanding, you need to be open
with them about how you set your monthly budget and
keep aside savings to run the household. If you are not
comfortable sharing the exact numbers, you can talk in
percentages. This will help them value and understand
money in a more holistic manner.
7
Start a savings account
for them
Many banks have the option for a child-friendly, zero
minimum balance account. Enroll your kids for one and
help them see their money grow over time. Teach them
how a bank works, discuss the concept of interest, and
how banks pay us for saving money.
8
Bonus: Teach them about
assets vs. liabilities
An important factor that will help your children stay away
from being in debt is learning the difference between what
makes them earn money vs. what makes them spend
money. Learning this simple difference at a young age can
have a huge impact when your children start evaluating
big purchases in the future.
Investing
made
easy.

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