Fin Quest

Financial literacy is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. The Organisation for Economic Co-operation and Development (OECD) defines Financial Literacy as a combination of financial awareness, knowledge, skills, attitude, and behaviour necessary to make sound financial decisions and ultimately achieve individual financial well-being.

Your children will understand the value of money and begin to demand less. Explaining the cost of items to children will help them slowly gauge what is and isn't expensive in society.

Once they start to understand the value of things, they'll become much more appreciative when they are gifted a present or given something unexpectedly.

By being taught about financial risks, children will be better versed to avoid financial debt and bankruptcy in the future.

They may be more inclined to plan for events in the future, such as saving for a holiday, investing in property, or even putting money aside for retirement.

They will lead happier more stress-free lives - this benefit is one that is often forgotten about, but should be heavily emphasized when considering the long-term consequences of teaching financial literacy.

If They Borrow Money, They Must Repay It:

By enforcing this rule, you ar showing your children that nothing in life is free (unless it's a birthday present). Depending on the age of your child, you could even bring interest rates into it. For instance, for every day your child owes you an Rs 1, they owe you another Rs 10.

Gift Them Financial Games and Literature

Why does learning about finances have to be boring? Games like Monopoly, business games can yield important lessons about identifying opportunities, counting money, and saving for investment.

Talk To Your Children About Financial Difficulties

Having an open and honest conversation with your children about the struggles of managing finances is brave but beneficial. By talking about your own experiences with money, you'll be able to guide your children in the right direction and they'll feel they can approach you for advice.

Remember, every child must start somewhere, and there's plenty of professional advice out there if you're finding it particularly hard to reason with your kids. By making it fun, and providing incentives, you can teach this important life lesson without even trying.