Editor ’ s Letter
Money Lessons Early
Exposing kids to the purchasing power of money , we are leaving them with half-knowledge
Malini Bhupta malini @ outlookindia . com
Money is a complex subject and so is our relationship with it . For some , money is merely a means to an end , while for others it is often an end in itself . A couple of months ago , I was sitting with Gaurav Mashruwala , financial advisor and author of Yogic Wealth , and discussing how our behaviour and biases impact our financial health . What Mashruwala said was very interesting . He believes that our relationship with money is determined at a very early age . Just as children tend to learn from their parents – all things good and bad – they also tend to pick up money habits from them . And habits formed back in our childhood are hard to break as adults .
Interestingly , parents believe that children are too young to discuss or learn money management . In fact , a former landlord of mine kept his assets and investments a secret from his son because he believed his son did not have any ‘ money sense ’ and would spend it all on frivolous things if he knew just how rich his father was . Someday these ‘ children ’ will inherit their parents ’ money and then they will find it challenging to deal with the inherited wealth . Even today , most people don ’ t believe in paying for professional guidance and prefer to rely on friends and family for advice .
It is for this reason that our cover story for this month addresses the importance of financial literacy among children . By exposing kids to the purchasing power of money , we are leaving them with half-knowledge , which can be very dangerous . It is essential for children to learn the importance of saving , earning , and spending . And this can be done in fun ways too , say the experts . We also have interesting case studies of parents and the money lessons they give their children . Priya Nair , who put the cover story together , says , “ While it ’ s important to teach children about saving and spending money wisely , there are no fixed rules or methods . However , parents should follow a balanced and systematic approach .”
Some parents feel that instead of giving money to children , setting an example by leading a disciplined and frugal life is the right way to teach them the value of money . Yet other parents reward their children with cash or treats for good behaviour to teach them concepts like earning and saving . Indeed , such life lessons have to be taught . What route parents choose to follow would depend on their comfort levels and individual preferences .
Anagh Pal has compiled a list of investment options available for parents looking to save for their children ’ s future . From bank accounts to insurance and mutual funds , these days there are specific products catering to children ’ s future needs such as higher education or marriage . And as always , the advice from experts is to start early .
While talking of money wisdom , stand-up comedian and television personality Bharti Singh has lots to offer . She claims she treats money like a guest in her life . “ Just as guests come and go unannounced , flow of money too cannot be predicted – and therefore , one must never take it for granted ,” she says .
In this issue , we also have an entire package on stocks and how investors can battle volatility . Suyash Desai spoke to market experts to decode how markets would fare in the new fiscal , and explains how investors can tide over turbulent times .
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Outlook Money May 2018 www . outlookmoney . com