Why We Need to Teach our Children the Value of Money and Saving.

                        Why We Need to Teach our Children the Value of Money and Saving.

As children, we were never taught how to manage money. In school, we learned mathematics, science, and literature, but nothing about financial discipline. When we started earning, many of us only knew how to spend on daily needs and we indulged ourselves in luxuries – without understanding saving, investments, or long-term planning.

The lack of financial awareness comes with a serious consequence. Many young professionals find themselves trapped in debt cycles, living paycheck to paycheck. This situation has been exacerbated by the rise of easy EMI, with which we buy gadgets, vehicles, and other luxuries that our salary cannot truly afford.

Also, we live in a society where we grow up watching others and following suit. The neighbor buys a new car; and we feel the pressure to match it.  When a colleague upgrades to the latest phone, we don’t want to feel left behind. This unhealthy competition – over cars, big houses, gadgets, and other luxuries – pushes us into financial commitments that have little to do with our real needs and everything to do with a desire to show off.

Furthermore, this societal pressure has led us to debt cycles and today, many professionals are working for their EMI’s. The burden of multiple instalments leaves little for the household. To make things worse, credit cards add fuel to the fire. Nowadays, the lure of “buy now, pay later” encourages overspending, and when the bills pile up with heavy interest, families slip deeper into financial stress. Now think, how often do we rush to buy something we don’t really need, just because it’s on EMI?

To address these financial challenges effectively, we need to implement the following focused approaches from a very early age:

1.       1. Financial Education in Schools: Schools should include the concept of saving, budgeting and investment. The power of compounding if understood early by children could do wonders for them in future. This is crucial because we see students who excel in life, later become administrators, educationists, doctors, or bankers with high salaries, yet they suffer financially because they were never taught how to manage money responsibly.

2.      2.  Parental Role: Just as children are taught manners early, they should also be taught about savings, budgeting, investments, and compounding; this knowledge can transform their mindset from a very early age. Parents can involve their children in household decisions from the early age. The concept of saving from the money they have been given to buy things can truly transform their habits. It’s very important to raise our children with financial sense, moral education and emotional resilience – because if they lack it, they can destroy everything we have built for them.

3.       3. The Understanding of Delayed Gratification: One of our biggest financial lessons we are never taught is delayed gratification. Most of us are raised the opposite way.

Take a simple Example:

When a child cries for a toy, what do we usually do? We give in and buy it straightaway, just to stop the crying. We don’t think if we really need it or if we can afford it. The child then grows up with a mindset that wanting something and getting it instantly is normal. But real financial wisdom lies in waiting. Delayed gratification means saving first and buying later. For example, instead of buying on loan or swiping a credit card for something we cannot afford, it’s far better to save a little each month and pay in cash. It may take longer but it builds discipline, patience, and sense of control – peace of mind in the long run.

4.       4. The Beauty of Living Below Your Means: No matter how much one earns, spending less than you bring home creates a cushion for the future. We often see people with high salaries but no savings, constantly struggling because their lifestyle grows faster than their income. On the other hand, modest earners who control their expenses and save a little regularly often live with more peace and security. Teaching children this principle early can prepare them for tough times, because living below one’s means provide a financial security during crises like job loss, illness, or emergencies.

 

At the end of the day, financial stability is not about how much we earn, but how much we keep.  Easy EMI, credit cards and other debts keep us under pressure to keep up with others as per their standards instead of security. If we start to teach our children, the value of money – lessons like saving before spending and living below their means – we can prepare them for healthier financial future. The real luxury is not the car bought on loan or the gadget on EMI, but the peace of mind that comes from being debt-free, having savings, and being ready financially for life’s adventures and uncertainties.

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