Imagine this: A middle-class family, like many of ours, where both parents work hard to ensure their children get the best education, the best facilities, and a comfortable life. They pay rent or EMIs, utility bills, school fees, groceries, and medical expenses, all while trying to save for the future. But have we ever asked our children—do they understand how much effort it takes to run a household?
A Reality Check on Inflation
Let’s take a simple example: school fees. Ask any child today, “Do you know how much your parents paid for their school fees when they were your age?” The difference is shocking! A school that once charged Rs 5000 a year now charges Rs 1,50,000 or more. This is inflation—something that impacts everything, from food prices to education costs, but is never really taught in schools.
If children are unaware of inflation today, how will they prepare for their future? The cost of education will not remain the same when today’s kids grow up and send their children to school. But do they realize this? And more importantly, are they being taught how to manage money in a world where everything becomes more expensive with time?
Culture of Unnecessary Spending
Today’s kids are growing up in a world where everything is available at their fingertips. They want the latest gadgets, branded shoes, and expensive accessories, often because their friends have them. Parents, too, sometimes give in to peer pressure. “If others can buy, why not us?” they think. But here’s the truth: fulfilling every demand of a child is not love—it’s financial mismanagement. Instead of handing over money without thought, what if parents encouraged children to save for what they want? What if, rather than buying a new phone instantly, kids were asked to contribute a portion from their savings?
Why Financial Literacy is a Necessity, Not a Choice
When we talk about education, we focus on subjects like science, math, and history. But where is personal finance in the curriculum? Schools teach complex algebra, but not how to budget expenses, save money, or invest wisely—skills that every person needs, irrespective of their career path.Commerce students get some exposure to financial concepts, but even they often struggle with real-world financial decisions. What about students in engineering, science, arts, or sports? Many of them graduate without any understanding of how to manage their salaries, investments, or loans. This lack of knowledge leads to mistakes like overspending, getting trapped in debt, or failing to plan for future goals.
What Industry Experts Can Do
This is where experts like us come in. As financial professionals, we understand the importance of managing money wisely. But how do we teach this to children?
The answer is simple: Make it fun!
Use real-life examples – Instead of teaching finance like a textbook, we can show them how their own pocket money can grow with saving and investing.
Introduce financial games – Games like budgeting challenges or simulated investments can make learning exciting.
Show practical applications – Ask them to compare the price of a product today vs. 10 years ago. Let them calculate how much it might cost in the future.
When kids see how money works in their own lives, they start understanding its value. Some children will grasp the concept quickly, while others may take time. But with consistent exposure, they will slowly develop better financial habits.
Parents, It Starts With You
Many parents I’ve spoken to agree that their children need financial education. However, since schools do not provide it and most parents are not experts in finance, they don’t know how to begin. The solution? Encourage children to attend financial literacy workshops.
Workshops like ours help students learn about financial planning, banking, investment, loans, credit scores, and setting financial goals—topics that schools ignore but are crucial life skills.
Imagine if your child understands:
• How to save for their dreams instead of making unnecessary demands.
• How to invest wisely so that their money grows over time.
• How to manage loans and credit scores so they don’t fall into debt traps.
• Wouldn’t that be a gift that lasts a lifetime?
A Question for Every Reader
Take a moment to think—did you receive any financial education in school or college? If you studied commerce or management, you might have learned some concepts, but even then, did you fully understand how to apply them in real life? And if you studied engineering, science, or arts, did you ever get any formal lessons on managing money?
If the answer is no, then let’s not let our children make the same mistake. The sooner they learn, the better prepared they will be for the real world.
A Step Towards Financial Freedom
To bridge this financial knowledge gap, I have designed a 10-day Financial Literacy Workshop for students of Class 6-12, where they will learn about saving, investing, inflation, smart spending, and financial planning in a fun and engaging way. With interactive activities, real-life projects, and MCQ exams, this workshop ensures that kids grasp essential financial concepts early.
As an industry expert managing 600+ clients’ investments over the last 12+ years, I bring practical financial insights to help children develop money-smart habits for life.
(The writer is the Founder of ‘Investment Options’, an insurance and investment consultancy based in Goa since 2013, having pan-India clientele)
