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Mother's Day 2021: Key tips for mothers to teach good money habits to kid

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It is often said that mothers are usually the first close friend that a child has.

Mother's Day 2021: Key tips for mothers to teach good money habits to kid
It is often said that mothers are usually the first close friend that a child has. Hence, it is important for them to address the topic of investments and good financial habits at an early stage.
Here are key tips for mothers to do the same:
Start talking about money early
According to Ankit Gera, co-founder, Junio, talking about money with kids must not take a backseat. Gera says that it is agreeable that a six-year-old kid may not be able to understand in-depth money matters or different values between Rs 10 and Rs 1,000.
However, as Gera says, it is also true that children are incredibly perceptive.
"They watch parents when they pay for something using a debit or credit card, thereby grasping how parents spend money and where. So, parents should convert these moments to teach them key money lessons," Gera opines.
Begin at home
According to Pranjal Kamra, founder of Finology, educating kids about financial responsibility must begin at home and this should start when they are young.
As per Gera, striking conversations with kids relating to money will also help kids to understand how much they know about earning, spending, saving and donating.
Explain about investments
As a kid, the interaction with money mostly involves spending, when they see their parents buying different kinds of stuff. But, Kamra suggests that parents also need to explain to the kids that money is not only meant for spending, one needs to save it for emergencies as well.
"Parents can give examples and explain to kids why they are saving it or how this saved money will help them in the long run. One common and most effective way kids can be encouraged to save at a young age is with a piggy bank. Parents can also guide them to enhance the savings of Piggybank by following a disciplined saving rule," Kamra advises.
Once kids are aware of money and savings, Kamra tells parents to introduce kids to the concept of investing and how they can grow their money with this.
"Parents can involve kids in their investment discussions like why they are investing in a particular stock, bond or gold and also encourage them to invest their savings," Kamra states.
Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
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