I grew up in an environment where talking or thinking about money was perceived as negative. Anyone who does that is labeled a “money-thinker”. Not only me, but most children born in the 90s or 80s had very little idea of money.
All our childhood money was just a means to buy some chocolates or snacks. We kept it in a piggy bank to “save” on certain days. For me, the neighborhood is on display to buy lots of fireworks during Diwali in front of other kids. It was only after growing up that we realized the real-world importance of money. Yet, some children of my generation are still struggling to understand how to manage, save, and raise money.
Distinct the children of my generation, today’s children have the opportunity to make some serious savings or investments and become financially secure at a very young age. Does it make today’s generation smarter than it was in the 1990s? Ankit Gera, the co-founder of Junio, offers a different perspective on this question.
It’s not about whether kids in the early 90s are smart or whether kids today are smart. Previously, for children, managing finances or money was mostly about accepting money and saving in a piggy bank. But today’s kids are digital natives and are increasingly using online platforms to learn, shop, and connect with their classmates, Gera FE Online said.
The right age for money lesson
Gera suggested that the children be given financial lessons as soon as possible. Even very young children can sometimes understand the concept and value of money. So, the best way to get started is to provide real-life situations and experiences that interact with money and get its value,
How to teach children money
Your child can establish teaching moments. For example, when you pay a grocery store owner, explain the process to your child. Instead of giving children all the money lessons at once, you should take one step at a time.
The most important lessons you can give your child are budget, credit or loans, risks, and basic taxes.
There are also many apps like Junio or Birdfin that can help kids get acquainted with money management.
Gera’s own company also offers the Junio smart card, which is a good medium to teach pre-teens and teens to protect, spend and budget through a set of activities.
He said children can learn how to earn, save and spend money through Junio. They can experience real-life ideas of savings, interests, and integration that can prove to be very valuable later in life.
In the US, the Greenlight Debit Card is a unique tool/platform/app that helps children learn money management skills while developing financial knowledge and discipline. “We want to achieve something similar in India with the Junio smart card,” Gera said.