Effective insurance for children...
A Punchy Headline
Is teaching them to invest since childhood. It bears fruit, too!
When it comes to teaching financial management to our young ones, do we really start them young?
Ask any adult, and the resounding answer will be NO. Well, do it like it should have been done all along. Here’s why, and how, you need to introduce the concepts of handling money, investment, etc., to our youngsters at an early age. Do this and watch them evolve into responsible adults who are financially savvy and smart. Every parent’s and teacher’s dream. If you have a young child or a grandchild at home, congratulations, by continuing to read you’ve already taken the first step. Remember, teaching financial management to children is not going to be easy and you must find easy interesting activities to keep them engaged. However, when they get interested in learning how to manage money, they get good at it really quick!
Here’s what you need to keep in mind:
The first financial understanding comes to us at the early age of 2, so it’s never too early.
Using real money makes a huge difference. Instead of teaching just the subject, let your child experience it. Maintain a progressive flow; don’t make all the inputs in a single day. Take time and build a habit of learning; it will stay with your child for a lifetime.
Disclose your finances to them. If you share your mistakes and experiences, they will learn from them. Most importantly, they will be inspired by you.
Be on the lookout for and consider signing up for interesting programs that teach children about financial planning. Even if financial education is mandated in the early curriculum, these programs will often give a broader view.
Instead of just handing over pocket money, guide your child into understanding how to utilize it. Create exciting activities that will keep their minds engaged. Furthermore, they will find a genuine interest in them.
Be prepared that they will mess up. But then, who hasn’t? Help them learn from their mistakes, and move on.
Important to know:
While you are trying to introduce to the children the concept of saving, a very effective way to ensure they imbibe it for life is to expose them to practical learning. A good time to start them off could be to introduce them to practical aspects in teenage. That’s the time they’re most inquisitive and if you can get them interested in investment, they would grow into fast and effective learners. For instance, a good way to do that is to buy a plan for a child at an early age. This could be a ULIP with a waiver of premium rider where further premium gets waived while benefits on maturity remain intact, in case of demise of a parent who is life insured.