Arti Arora, CFP | Head Financial Planner

There is so much emphasis on educating our children well, giving them an all-round knowledge of every subject, honing their communication skills, getting them enrolled in different classes, etc. All these initiativesare great because if we go back to our childhood, I don’t think we were even half as smart as this generation is. They seem to be born with a different chip altogether.

But are we doing enough or is it that in our zest to give them the best of everything, we are ignoring some basic but important life lessons that we must impart and empower them with?

The hard earned money principle and valuing every bit, not taking things for granted, not wasting food, water and with other essentials, money too. These are some very important learnings that one must try and instill in our children from a very young age so that they adapt to different situations life may offer and not get overwhelmed in any which way.

The above is not very difficult to achieve provided we follow some basic money rules –

1. Discuss money where relevant – Children don’t have to be made money centric but must be made aware about the difference between splurging and spending money. Wasteful deployment should be discouraged. Occasional splurging is fine and permissible to the family members subject to a pre-set budget.


2. Encourage savings as a habit – Small or big, saving should be made a habit as this one habit will go a long way in helping the family and its members achieve their important life goals without much ado.


3. Prepare a budget sheet to track type and volume of expenses – Doing this will enforce a more effective decision making on non-productive and non-essential expenses.


4. Monthly family meets – This could be like a contest where each family member shares their experiences on money management and one member will be rewarded based on a ‘best financial decision’ taken premise. With a simple idea like this, you stand to benefit dually – as you get that much needed family time to keep the bond intact and at the same time, the whole unit including the children are sensitized about money and wise choices they can make with it.


5. Discuss financial and non-financial goals – This is pivotal as it is only when we identify our goals can we achieve them. A well-directed effort is always rewarded, and this goes with financial as well as the non-financial aspect of life.

Financial literacy is highly pertinent and when the whole family comes together in this initiative, the results can be quite rewarding. Each family member feels a sense of responsibility towards family objectives and with this sense of alignment, everything else falls in place and becomes achievable.