Before buying your child the next gift he or she has been nagging you for, should you sensitise your kid about money and savings? In that case, how do you explain it to them?
Parent and professor of psychology Tanu Shree Singh explains in an episode of the podcast series Difficult Conversations with Your Kids how you can discuss issues related to money with your child.
“A lot of times we try and protect them. We, the providers, would like to provide and not let them think about their needs in terms of money. But by doing that, we are doing more harm than good,” says Tanu Shree.
So, it is a good idea to start talking to kids about it fairly early, says the professor. “Books are a good start…they need to understand how to balance it (spending)…a Rs 100 note can mean something for one person and something entirely different for someone else,” she added.
Again, should you give your kids pocket money? The important question in this case is not when but why they need pocket money. “There is no specified ideal age (for giving pocket money to kids). Let the child negotiate–what should be the spending percentage, what should be the savings percentage and what percentage would they be giving away. That is extrenmely crucial in the understanding of money as well as relationships,” she explained.
Listen to the podcast here:
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