Money Smart

Teach your child how to manage pocket money and achieve goals. Time to inculcate financial discipline

- Jyotika Sood

Pawar family

New Delhi

Ravi and Seema teach their son, Samarth (6), the importance of savings. The child can use the money he gets from grandparents, parents, and relatives to buy toys later

Mumbai-based Vibhor and Vibha Sahni, with two sons Kanadh (7) and Shaurya (1.5), were introduced to financial literacy in the 30s. Vibhor, who works in the IT industry, has made investments in several financial instruments like mutual funds, systematic investment plans and equity. Every alternate month he gives Kanadh a few assignments in shopping with a budget of ₹500 to ₹1,000. While making his sons savvy on spending, he complains how an average household lacks this knowledge when it comes to raising children.

According to a report on Financial Literacy and Inclusion in India 2019 by the National Centre for Financial Education, only 24 per cent rural and 33 per cent urban Indians are financially literate. In gender distribution, females account for only 21 per cent, while males account for 29 per cent in financial literacy.

In a typical Indian household, elders take decisions and children remain aloof of financial literacy—a concept that is fast gaining popularity and is becoming an important part of the education curriculum. Although only a few schools have started imparting it.

India is two generations behind in teaching financial literacy, according to Vishnu Karthik, CEO, Xperiential Learning Systems and Director, The Heritage Schools.