How can we teach youngsters about Money management??

Often, youngsters complain that no matter how hard they try, the allowance they get from their parents always proves inadequate at the end of the month.  To avoid such a scenario, it is advisable to start talk to them and help in planning their expenses at the beginning of the month and not when they are half-way through spending their allowance

Instead of playing catch-up at the end of the month, one could earmark the money they receive for various activities they are likely to undertake in the course of the month.  Here, parents could chip in and help set goals for the month and work towards achieving them.

Youngsters are getting huge money and their sources are parents, bank credit cards, etc. They are spending as they are of no importance to them as inflow of cash is seems to be very easy to them.

Now one should be given big picture that if they cut down there unnecessary expense how much they can have in their future to spent. Like if an individual save Rs.3000 from their pocket money and start a SIP from it into a equity mutual fund generally yielding 14% rate of return annually they can have Rs.217926 after three years, by this money they can have a foreign tour, a new car, plots for other investment, etc. If they could realize that just by cutting their unnecessary expenditure they can have such a big corpus they will surely try to improve there savings and cut down unnecessary expenditure.

Young generation is now well equipped to understand the significance of money and its usage along with earning. I think people should help their children invest in share market and trade in various domains. It will not only increase their awareness towards companies and market, but also will make them the ballgame of investment and returns. This is how they will be more keen on investing and managing money.

Caution: Keep an eye that your child is not too much engrossed in trading that it hampers studies or other important focus areas.

If you can try to teach present generation of youngsters in old manner then they wont show interest because they already studying from their teachers n all. We can try for a financial layout of their own style without any changes at-least for a month or two. After that we will conclude the fact that at which place they are wrong. It will also enhance the creative power of youngsters  & they also enjoy the practical aspect of financial planning...

Firstly, the older generation appreciate the habit of savings and thrift themselves.

Now, we may encourage our youngs to have a Bank A/c in very early stage and keep whatever surplus in the Bank.

Most Banks allow students to open a/c from the age of twelve. Youngs will be surprised to grow their money when interest will be added in the balance.

Jargons like Financial Planning, Financial Budgeting etc. may not be understandable to them.

Dear madem,

pls. read book by Authore Robert Kiyosaki.

Regards,

Rahul Parmar

give them a money to run a home for a month