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Topic : Money management for youngsters
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Started by : Ekta Dutta, Hedge Fund Analyst/Trader, ING Vysya Bank   05 14 2010 09:20:12 +0000
Industry : Equity Research/AnalyticsFunctional Area : Equities(Markets)
Keywords : money value kids
Activity:  123 views;  last activity : 07 06 2010 20:18:09 +0000

It is never too early to learn about the value of money and how to budget and save. The earlier you can teach a child about earning interest versus paying it, the better prepared they will be to manage their own money.

http://www.impactlab.com/wp-content/uploads/2010/04/money-baby-4132.jpg

There are different degrees of knowledge and responsibility a child or teenager can have regarding money.

So, how to go for it?

 
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1 2 3 4 5
1 Teach them how your money can make money.
2 a strategic approach which is more practical and self thought.
3 Instill Values
4 Teach them about the value of money
5 Understanding of value of money
6 Alllow them to transact for their needs
7 Bonus point

Teach them how your money can make money.

idea posted by Ekta Dutta Hedge Fund Analyst/Trader, ING Vysya Bank

This is the lesson on investing, and it’s a lesson many of us can learn. It’s one thing to save, where you get perhaps 5% interest. But if your kids are going for short-term goals, they probably won’t see much compound interest happening. You’ll need them to make a longer-term goal, such as a trip once they graduate, if you have a teen-ager, or a down payment on a car, or even something a little smaller. Whatever the goal, teach them about how they can put their money in certain investments, and how those investments will grow over time.

That growth is their money earning money for them. It’s free money, almost, but the cost is not spending on other stuff in the meantime, and getting into the habit of investing the money. And it’ll help them get to their goals faster.

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by Shaji Khan, Managing Director, Eskay Consultants  | 05 14 2010 10:01:26 +0000

I definitely agree with Ekta on teaching the children about investing for future.

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a strategic approach which is more practical and self thought.

idea posted by manikanta raj Deputy Manager Finance, project financing, leading Financing company

value the money. good habit. can be thought through a strategic approach so that it is deeply rooted in ones life in natural way.  When a child become 10 years old, in vacations give them an opportunity to earn money where they can do some petty jobs for a month.  preferably in known concerns to you.  definitely they will be happy showing you the money earned by them at the end of the season.  Ask them to invest 50% of such earnings in his/her name in some financial scheme.  Surprised when such money matured and an unexpected gift purchased for them is actually done by their own money.  Happiness, proudness cherish.  A cultivation of this habit in child hood ensures that concerning about money and its value is a natural behaviour moulded in genes of the child as they grows. 

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Instill Values

idea posted by Shaji Khan Managing Director, Eskay Consultants

Well, children and money..... Its an interesting combination. No child knows and values money. Children think that their parents have lots of money and whatever demands they make, they have to come true. It all depends on the values you imbibe in his early childhood that will determine his future too.

So, I believe that parents should make the child learn to save first. Simply put, you need to advice your child that whatever he wish to have in the future, he needs to use his own money to purchase it. This will certainly deter him from making unwise purchases and help him purchase what he desires.

 

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Teach them about the value of money

idea posted by Aditya Sharma Insurance Advisor/Analyst, LIC OF INDIA, ICICI LOMBARD

Yes we should try and teach them the value of money. If he learns about it the earlier the better. He will be able to fight his way out. Though all the things can not be taught but most of them can be taught. In this era of modernisation when we are supporting them to be singers, chess players, dancers and all of those fields in which we feel they can be successful. Then why not tell them about the value of money and make them aware of its uses as well ways to safeguard it. This way he will be able to contribute better towards the betterment of the society at large.

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Understanding of value of money

idea posted by Arvind singh lodhi Sr. Executive, Cognizant Technology Solutions-UBS
Teaching all the time will not going to work untill unless it is not followed by the parents. Because child learn from his/her parents. Means we have to make the standards which attract to the child to follow the same and good way of investment.
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Alllow them to transact for their needs

idea posted by ABHIJIT KULKARNI Project Manager, BNP Paribas

Allow them to pay for their toys, Chocolates & clothes , which means mere involvement is enough and not to handover money in their hands,

Its important for all parents to teach kids about various aspects of Value i.e. Perceived or actual, Some people may feel satisfied when they spend money on something, even though they do not get any thing in return i.e. services

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Bonus point

idea posted by Harshalata Staram Sawant Accounts Executive/Accountant, Elan Fashions Pvt. Ltd.

Depends upon the age of the child.  If he or she is too small, who does'nt know the value of money, difficult to deal with them.  Yes but we can deal with a kid who knows the value of money.  Allow them to purchase their things in such a manner that they will not overspent the money, keep a target of xyz amount within which they will try to manage the things and give them option like if you will save so much of amount we will give you bonus amount or else gift or something like that.  Saving is one kind of invstment only which varies from person.  

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