Gaurav Mashruwala On Teaching Kids About Money

Following is an excerpt from yesterday’s TOI.

A question that is frequently asked by the  parents of young  children is: How do we teach a child about the value of  money and which is the right age to discuss the subject. The standard answer is that irrespective of their age, children today are already exposed to money-all the time, through media, through daily transactions with goods and services. Money is not just a currency of exchange, but an important factor underlying people’s lives, decisions, conversations and choices. Therefore, the child understands the power of money, says financial planner Gaurav Mashruwala. She or he starts believing that money can buy most things, especially given the onslaught of advertising. Most parents believe that exposure to money means discussing banking, investment, stocks, etc. However, money is about so much more-discipline, gratification, patience and value. In reality, there are four aspects of money-income, expenses, assets (investments) and liabilities (borrowing), says Mashruwala. A child needs to be exposed to all these aspects in a systematic manner. The right age to expose a child to money management is the day the child learns to spend money. Read more of this post