How To Teach Kids The Value Of Money I Ravi Subramaniam

0:00 Hi guys, welcome to KSP tv. Today we have with us banker, author and a father and a debutante in the children's writing space because he's just released his first children's book. Is that right, Ravi? His first children's book, which is called My First Book of Money. And that's Ravi Subrahmaniam for you. So we had a parent who asked us this question. How do you help children learn the value of money?

0:33 They actually substitute love with money. And because they are not able to spend time with children, they give them everything that they, that they ask for. I think all of us are guilty for that. But that's a very bad way of getting them to know about money. If you want children to learn about money, if you want children to understand the value of money, you have to control the supply of money. And that's the only way children understand.

0:58 They ask for Starbucks coffee, buy it for them. They won't know that Starbucks coffee cost 200 bucks. Now I think that's where the issue is. The best way to teach children the value of money is give them a pocket money, Give them some amount of money and say, this is your fixed budget for the month. It can be for the month, it can be for a particular activity, it can be for a particular task or whatever you want to do.

1:22 But give them a certain sum of money for a certain deliverable and let them manage their affairs in that money. That's the only way they will realize that, look, supply of money is not unlimited and I need to make it last longer. And once they realize it, it's a lesson which you remember for life. It's like walking, it's like breathing. You never forget all those. So once you realize the value of money, it stays with you forever.

1:50 How can parents talk to kids about money?

1:52 Parents need to first realize the fact that they need to talk to kids about money. I think most of us parents don't talk to our children at all about money. When they ask you any questions which border on money or tread that sensitive path, we tend to just wish it away. We don't talk to them at all. We change the topic or just give them a wishy washy answer. I think if you want to communicate to your child about money, be upfront, tell them what money is telling, tell them what the value of money is.

2:24 Tell them how difficult it is to earn money. Probably challenge them saying, fine, here, do this task for five days, earn 50 bucks. Let's see how many, how many of them are able to do that. But don't run away from money. Don't shy away from having uncomfortable conversations you don't want to have. You don't want to buy a dress for the child. Don't put the mother in front and say, go and tell her we can't buy it.

2:46 Have that conversation. Tell her why you either he or she does not need it, or why you as a parent can't afford that for them. The children will understand. Children are far more intelligent than what we think they are, so don't run away from it. Confront the issues. If you can't afford something, it's fine. And lastly, don't give everything to children.

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