Imparting personal finance and money lessons to children at an early age is crucial, as it equips them with essential knowledge and skills that will serve them well throughout their lives. This article emphasises the importance of starting early and discusses five valuable thoughts about money that children should learn first:
Purpose of money:
Firstly, children need to understand that money has a real purpose. It is not just a means of acquiring material possessions but a tool that enables individuals to pursue their
dreams, make their lives more comfortable, and bring joy to themselves and their loved ones. Instilling the value of earning and saving money early on can help children develop a responsible and balanced approach to their finances.
Meaning of money:
Secondly, it is vital to teach children that money should not define their self-worth. In a society that often equates wealth with success, it is crucial to emphasize that a person’s value goes beyond their financial status. Encouraging children to focus on their character, talents, and the way they treat others fosters a healthy perspective on personal worth, independent of monetary considerations.
Show of gratitude:
The third lesson involves cultivating an attitude of gratitude towards money. Children should be taught to appreciate the opportunities that come their way, acknowledging the hard work and sacrifices made by previous generations. By recognizing the privilege of what they have received, they can leverage those resources to create more opportunities for themselves and others, thereby perpetuating a cycle of growth and success.
Dangers of greed:
The fourth lesson centres around the dangers of greed. Children should be made aware of the perils of excessive desire for wealth, as it can lead to unethical behaviour, compromised values, and a loss of perspective. Teaching them the value of contentment and understanding that true wealth extends beyond monetary possessions will equip them with the tools to make wise financial decisions and avoid the pitfalls of greed.
Focus on earning:
Finally, the article highlights the importance of focusing on one’s talents as the ultimate asset. While inheriting wealth from parents may provide a temporary advantage, it is a person’s own abilities, skills, and unique talents that hold the greatest potential for success. Encouraging children to develop their talents, pursue their passions, and continuously learn and grow will set them on a path towards financial independence and fulfilment.
In conclusion, starting early with personal finance education is crucial for children. By teaching them these fundamental lessons about money, children can develop a healthy attitude towards finances, understand the value of hard work and gratitude, and prioritise their talents as their ultimate assets.
These lessons lay a strong foundation for their future financial success and well-being.
(The author, Amit Gupta, is the MD of SAG Infotech)
