Snehal Thakur

Investment fundamentals have changed dramatically in the last decade and going forward it will change more dramatically. The habit of savings needs to be inculcated from an early age. Charity begins at home hence education about savings and investments should begin from the early age and that’s too at home. Its significant responsibility for the young adults to teach their children about savings and investments from an early age. A habit of saving is very important no matter at what age you are. Today’s generation does not understand the value proposition of anything as compared to an earlier generation. The reason is that today’s generation lives on the edge of smart phones. The word Struggle has been replaced with comfort and this is the core area of difference between savings and spending habits of today’s young generation and old. Behavioral finance has a huge role to play in the society going ahead. The next decade is full of challenges for the parents provided proper steps and process is not followed to control the behaviors of the kids.

Today’s generation doesn’t have the idea of the pains through which their parents and grandparents have gone through to get better leaving. Today right from the childhood there is a competition wherein children are given expensive gadget and expensive lifestyle just to maintain the peer completion alive. Today’s generation does not understand the value of the money. There is no ideal age to inculcate saving habits in your child, but it can be taught slowly once the child turns five because, from that age, he/she begins to understand concepts of life. Their inquisitiveness should be used to educate them to understand the value of savings and investments which gives them long-term knowledge about wealth creation.

The various factors which can be implemented to educate & build savings habit are as follows:

  • Be it a boy or girl to understand the value of money in today’s life is really important and why saving is important and what are the benefits
  • It is important your children take the initiative in the household chore and understand how the budget is managed every month and how unwanted huge expenses can be managed
  • Parents should not keep children out of budget planning. Active involvement in the subject is the key to success for building awareness of savings and investments
  • Give them a small amount to spend and tell them that in this amount of two things you can buy anyone. They should learn to spend the money according to the need for that for eq give your children Rs 20 and tell them that u can either buy a chocolate or a packet of chips. let them decide what is important for them
  • Take your kids to grocery shopping. This will make them aware of expense management also how judicious mix of resources could create balanced shopping.
  • Give your kids a budget and tell them how much to save and how much to spend. Give them a piggy bank wherein they can keep the saved money
  • It is very important to make your children understand the importance of saving. It will not just help them now but also in their future life. how to save where to invest how to cut down the unwanted expenses
  • Open a saving account for your children so that he can learn to manage the money. This is one of the biggest tools where all expenses related to the children could be discussed and they could be involved to manage their pocket money judiciously.
  • It is very important to teach your children how to differentiate between your needs and your wants. The difference between instant gratification and delayed gratification is an important aspect of financial management.
  • If your child demands a toy do not give that toy immediately For eq if the toy is for Rs. 200 divide that amount and give your child every week Rs. 40 per week and do that for next 5 week and ask him to save that money and buy that toy for him once he has saved the entire money
  • Girls are been taught at an early age how to save the money whereas the boys are not. The reason is that girls are more prone to be involved in the household matters compared to boys.
  • Don’t try to control kids by stopping them from spending. Explain the concepts and the rest will be history.


Smartphone have changed the culture and competition among people. Building habits of savings are key to long-term prosperity in the family. Building the habit of savings and creating understanding for value proposition is always a difficult task provided with proper logics the same is understood to the children’s. Active involvements into household expense management will make these children avoid the traps of extravagant expenses. Peer pressure management regarding expenses is another spoiled brat ruling today’s society. This needs to be eliminated by the parents itself by teaching the kids about the value of money. Another factor which destroys the kids is lack of time being provided by the parents and replacing the same with money or gifts etc. This is another killing instinct which should be taken care properly. Parents cannot be the replaced by gifts or money or excess spending.

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  1. Hardik Srivastava says:


    Managing money well allows them to distinguish between wants and needs, learn how to save and budget, and make wise spending decisions.

    It will also help them understand how problems in managing money can lead to unwanted financial obligations, poor money decisions, and significant stress and anxiety in the short as well as long term.

    Any other articles that you can suggest?

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November 2020