Does your child have a piggy bank to store the stray coins? It’s time to upgrade, open a bank account for your child. Read on to know more.
By Ashika Anne Kumar
Children, especially very young ones, have no concept of money. Even older children may not be able to entirely grasp the idea of how their parents earn and spend money for the family. To truly appreciate the fruit of labour, children need to be educated about where the money comes from and where it goes. This can be done through a gentle introduction to domestic finance. From early on, children should be taught that everything from their clothes, toys, school fees, food and even the occasional treats cost money.
The very process of entering a bank, filling out a form and interacting with bank personnel — like an adult — is an experience that children will cherish. And when older children begin operating their accounts, the concept of money stops being something abstract and becomes real. They see that the pocket money that they had painstakingly, and with much sacrifice, squirrelled away has now grown into a much bigger figure.
It is this lesson of delayed gratification that will serve them well as they grow into adults — be it saving for a rainy day, training for a marathon or even understanding that relationships, like money, take time and effort to grow.
Impulsive spenders and shopaholics are not born, they’re made. It’s easy for our children to get lured by the jazzy world of commercialisation. As our children are growing up seeing the credit card more than hard cash, it is necessary that we teach our children the value of money. They must learn to save and invest their hard-earned money wisely. But, as parents, we must remember that it is better to practise than preach as children learn more by observing.
Who can open an account?
Sukanya Samriddhi Yojana
As part of the Beti Bachao Beti Padhao (Save Daughter, Educate Daughter) campaign, the Government of India has launched the Sukanya Samriddhi Yojana for girl children under the age of ten. Here, parents can open a bank account in their daughter’s name (limited to two daughters per family) in any one of the several appointed banks.
To encourage parents to utilise this scheme, the government offers tax rebate under Sec 80C; minimum deposit is only Rs 250 and thereafter any multiples of Rs 100 with a maximum limit of Rs 1.5 lakh in a financial year.
As a parent, the onus of identifying needs from wants rests on us. As our children see us make judicious choices, save money for important expenses and focus on running the house on a budget, they will automatically mimic us. This way we can successfully create a generation of hard-working individuals who spend wisely and save naturally.
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