Rajpreet Kaur wants her 16-year-old son to be money-smart. She wants him to learn the importance of money so that he can make informed financial decisions later in life. "I have a separate savings plan for my son. But I don't want him to depend on that. I encourage him to use his pocket money judiciously so that saving becomes a habit," she says. But Kaur's son hasn't imbibed the lesson of financial literacy that his mother has been trying to teach him. "He chooses to be his own money manager. He spends all his pocket money on food, stationery and other things that he fancies," she rues. Kaur is not alone. Many parents face trouble in controlling their children's expenses and demands as kids prefer to manage their own finances. But it's time parents put their foot down, stress experts. Counsellor Geetanjali Kumar says that in today's world it has become crucial to inculcate in kids the importance of saving money. "There has to be a clear distinction between needs and wants. Parents must constantly ask the question - how useful will a product be? However, most parents don't do that," says Kumar. The inability to say no usually arises from guilt. Parents "want to give their kids a life they never had". But instead of giving in to every demand of their children, parents need to talk to them about terms like fixed deposits and savings. They should be taught how to budget and prioritize their purchases," says Kumar. In an attempt to introduce children to financial literacy and teach them the importance of managing finances, Reserve Bank of India came up with special comics and games for them five years ago. A set of five comics - including 'Raju and the Sky Ladder' and Money Kumar' - were printed by the bank. The books talked of monetary policies, savings and inflation. The Regional Director of RBI, Chandan Sinha, says that financial literacy for kids is very important for financial inclusion. "The idea is to catch them young. Moreover, in India people generally invest in physical assets. The initiative is one way of shifting from physical assets to financial assets," Sinha said.
TOI
