Financial Literacy of Your Child Could Make a Huge Difference in their Life: Financial Literacy for Kids

Why financial literacy for kids is important?

Remember that heart-stopping moment when your little one, with wide, hopeful eyes, pointed at that toy car that’s ten times your monthly grocery budget? Yep, we’ve all been there. Those innocent requests can quickly turn into complex financial lessons.

Teaching kids about money isn’t just about handing them an allowance; it’s about equipping them with a financial compass. It’s about turning them into wise little money managers who understand the value of a rupee and the thrill of saving.

Money Matters

Think about it: we’re surrounded by numbers. Prices, bills, salaries – they’re part of our everyday lives. Teaching your kids about money isn’t just about preparing them for the future; it’s about giving them the skills to understand and navigate today’s world.

According to a study from Cambridge University, these early habits form the core of financial literacy for kids and shape the money-related decisions they’ll make for the rest of their lives. 

Teaching Your Child About Money: Financial Literacy for Kids

Here are some practical tips to help you teach your child about money:

Monthly Allowance

• Calculate and set up a monthly allowance for your children.
• Let them manage their money and make decisions on what to buy and how much to spend.
• Occasionally increase the allowance and give extra rewards, maybe during festivals like Diwali.

Review Spending Sessions

• Encourage your children to keep a daily diary of their spending.
• Review and discuss their expenses at the end of each week.
• Explain how one high expense can affect the monthly budget.
• Help younger children with this process and show them the math involved.
• Lead by example by managing your finances visibly.

Set Goals and Save

• Discuss the difference between wants and needs with your children.
• Teach them to save money to buy expensive items they desire.
• Help them set saving goals and keep their saved money safe for them.
• Share your own saving experiences, like saving to buy a car.

Involve Your Kids

• Involve your kids in setting the monthly budget and planning savings.
• Use percentages if you’re uncomfortable sharing exact numbers.

Real-World Money Lessons

• Teach your children about living within their means and budgeting.
• Take them to the market and discuss different occupations and wage rates.
• Start small by teaching young kids to differentiate between various denominations and make change.

Grocery Shopping as a Classroom

• Make grocery shopping a habit with your children.
• Create a shopping list together to avoid overspending.
• Introduce them to item rates and measuring scales.
• Give them math problems like calculating the price of 250 grams of an item.
• Regular practice helps them organize their funds and expenses better.

Play Strategy Games

• Make learning fun with board games like Monopoly, The Game of Life, and Payday.
• These games teach money management, financial planning, negotiation, and career planning.

Resources for Teaching Financial Literacy for Kids

There is a range of activities and books to educate kids on finances. Here are some resources to help you start teaching your kids about finances:

Books

Books are an excellent resource for teaching kids about finances. The books typically focus on specific topics such as money and banking, budgeting, credit and debt, insurance, etc. Most books out there engagingly teach financial literacy so kids can learn about important topics throughout the years. 

“Money Ninja” by Mary Nhin, Part of the Ninja Life Hacks series, teaches kids about the importance of saving, investing, and making smart financial decisions. “If You Made a Million” by David M. Schwartz is another book that explains earning, saving, and investing in a way that’s easy for children to understand.

Online Resources

A range of resources can be found online that teach children about money matters and help them gain skills in math and reading. For example, iPrep has financial literacy modules with informative bite-sized videos and notes to help children learn about money in a simple and effective way.

iPrep is a comprehensive learning application with NCERT aligned academic content as well as beyond academics content including financial literacy, sports, yoga and more. Khan Academy Kids also offers free educational resources, including lessons on financial literacy for young learners.

Financial Literacy Apps

Kids learn best when they are engaged. These dedicated financial literacy apps are fun and engaging while providing financial lessons. These apps teach kids how to compare prices, manage their finances, and much more. Applications such as Zogo Finance offer gamified financial education, turning learning about money into a fun experience.

Financial Literacy Content on iPrep App

Now, let’s talk about how iPrep can help you teach your kids about money management. The iPrep offers comprehensive financial literacy modules designed to make learning about money fun and engaging for children.

Bite-Sized Videos

iPrep features over 140 bite-sized videos that break down complex financial concepts into easy-to-understand lessons. These videos cover everything from basic money management to advanced financial planning, making it simple for your child to grasp important topics.

Comprehensive Modules

The app offers content on various financial topics, including budgeting, saving, and investing. These modules are designed to build a strong foundation of financial literacy that will benefit your child for life.

Age-Appropriate Content

You can sort and organize the content according to the age of your learner, catering to both beginner and advanced groups. This ensures your child gets the right level of information they need.

Hindi Content

For added convenience, the content is also available in Hindi, making it accessible to a wider range of learners.

Notes

iPrep includes short and succinct notes that make concepts easy to grasp and easy to revise, helping your child retain and understand the information better.

With iPrep, teaching your child about money becomes an enjoyable and educational experience. 

How the Financial Literacy lessons on iPrep can help your child:

The Financial literacy for kids content on iPrep can help your child in the following ways:

Independence

Short and simplified videos on understanding money will help introduce your kid to the concept of money in an age-appropriate manner. This will make them more confident with money and help nurture autonomy.

Decision Making

Content on Saving money and creating a budget will teach valuable life skills that help manage finances. These fundamental steps will ensure that your kid develops decision making skills about money from an early age.

Future Planning

Big things always start small. Saving for college, a car, or a house starts with understanding how money works and how to save from something as little as pocket money.

Avoiding Scams

This is probably very important in today’s world where we come to hear stories of online scams and frauds every day. The financial literacy modules on iPrep will help your kids spot red flags and make informed decisions.

Conclusion

Teaching your child about money is an investment in their future. By starting early and making it a fun and interactive experience, you can equip them with the financial knowledge and skills they need to succeed. Remember, it’s about building a strong financial foundation that will last a lifetime.

Download the app today and explore smart ways to introduce your kid to money and savings!