It’s the duty of the adults in a family setup to impart financial literacy to the younger members or to those who aren’t financial-savvy. Financial literacy, in simple terms, is the management of credit and debt and the understanding that is necessary to make financially responsible decisions that are integral to our day-to-day life. This would include factors like knowing how a bank account works, how to balance a budget, what using credit card or debit cards really means, buying a home, children’s education and ensuring an income at retirement.
When you teach your children about money, you help them understand the relationship between earning, spending and saving. This financial literacy can begin at a young age. You could help them learn simple money concepts like counting coins, making small purchases and saving in a piggybank. As they get older, they can learn about savings accounts, balancing a chequebook and creating a personal budget. When you introduce ideas at a young age, you create an interest in the young minds as also awareness. This will help you empower them and, over the years, take control of their financial lives.
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