Teaching Financial Responsibility to Kids !

Amidst the démonétisation storm hovering above India. I am pretty sure almost all the children above the age of 5 have been hearing about this news everywhere. Yes it's a tough word for the young ones and definitely for us too!

They are observing the chaotic and endlessly long lines of people waiting for their turn outside every bank and ATM.They are also aware of the discussions moms, dads and grandparents are having almost everynight, about how they are facing this crisis and how to overcome it.

I explained my son that our prime minister Mr. Narendra Modi during his election campaign had promised us that if he won the elections, he would do everything in his power to stop black money funding from Indian rupees to various sources for the destruction of humanity. And he did it!

Putting his life in absolute danger, causing a little inconvenience to the common man, he demonitised the ₹500 and ₹1000 bills overnight. So, people who had kept these notes illegally in their houses, could not use it for any illegal transactions. There also are a few people who are earning a huge amount of money, but are not paying taxes to the government on the amount they have earned. If we have any ₹500 or ₹1000 bills, we can deposit some of it into the back, or get some of it exchanged with the new ₹2000 and ₹500 notes that are being traded by the bank.

Apart from answering a gazillion questions that came to his mind,and solving the mystery as to why mommy broke my piggy bank at such an unusual time of the year, I was able to satiate his curiosity.
Also grabbing this opportunity, I talked to him about:
1) How important money is.
2) The difference between needs and wants.
3)Why is it so important to spend in a budget.
4) How to face the impulse buying urge.
5) How to start saving for future goals.
6)Ways you can earn your money.

My son was adamant that just like his older friends, he also wanted a cellphone. The latest one and that too soon. ( Dilema of all parents today!). Once I explained these concepts to him. He finally eased his demands and came to a conclusion. He would definitely get a cellphone, but only this time he decideded to earn it. (Nope he still wanted the latest one though.) He was ready to give me a hand in whatever possible so he could earn a few extra bucks and get the phone he wanted on his own. I was enthralled hearing that, it was a moment of motherly pride. The stepping stone of responsibility and my son was getting there. With an expression of gratitude, I helped him make a list of chores or household activities he could help and earn in:

He managed do finish most of the tasks. Gave him a feeling of achievement and is looking forward to earning more next week.

Another moment of momma gone Right;)