Make Your Millennial Money-WiseMay 04, 2018(15:44)
With the progression of time and industries, the millennials have quick ways to make money; they have made jobs and careers of things unimaginable a few years back. However, what they lack are the skills to manage their finance.
Financial Skills is one of the essential life skills. We, at Karvy, had identified this as a critical issue and started workshop programs partnering with several leading academic establishments in India to introduce how to manage money to students. In furtherance of this initiative, we wish to insist parents to prioritize teaching how to manage money to their children. And the summer vacations seem like the perfect time to begin this important lesson.
Here are few things you could use to get started:
Deny Pocket Money, Offer An Income
The first and most basic lesson that needs installation in any young mind is that money comes from hard labor. Instead of handing them a regular pocket money, it is better to reward them or pay them for the things they do. Assign them simple tasks around the house or other tasks you might find them fit for and pay them at regular intervals: weekly or monthly. This will not only give them senses of earning money but will also make them responsible for their duties and deadlines related to it.
Give A Budget And Stick To It
Once they get the income, introduce them to budget planner tools. Allow them to fix what they want to spend on candies, toys, books, et al. and how much. They might work this out very well. But there are higher probabilities of them chalking out a misbalanced budget, overlooking a few things and overspending on something. You need to ensure not to give extra pocket money at the end. This will explain to them why personal budget planning is important and give a real-time experience of money shortfalls. This would also be an appropriate time to help them use the budget planners better and move to the next step.
Ask Them To Save Money
Children have a never-ending list of demands and here you can use it for your benefit. Encourage them to save money for a long-term target. You may introduce different money saving tips, especially the ones you follow. From the little money they are making, they can save money to buy something they have been wanting. This will make them comfortable to wait for the thing they want and save money for it, regardless how big or small their income is.
Open A Bank Account
Once they save, you can also introduce the benefits of compounding. Help them open a bank account where they can save the money and earn interest. Let them handle their account, deposit the savings and monitor the account through online banking. There are several banks that now offer special children accounts with added benefits. This will also pave a path to introducing other investment tools in due course of time.
Vivek Ranjan Misra
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