Thursday, May 22, 2008

Money management and role of parents

In today’s world money has become the most crucial part of all of our lives. Without money, life seems to appear like a vacuum, existence in which becomes a Herculean task.
Children, from the time they start learning to walk, comprehend the meaning of money. They begin to associate everything with money. It begins with meager amounts. For e.g. “Mummy can I get 5 Rs. to buy a chocolate?” This is the initial stage, which tends to develop as a habit. Once the child forms a habit at such a small age, it lingers around with him throughout his life.

As the child grows the requirement of money increases by the day. The concept of ‘pocket money’ comes in as the child enters school. With the entrance of the child into college, and peer pressure attacking the child from all sides, the necessity of money increases. The ‘image’ of spending unwisely becomes important in order to be a part of the ‘cream crowd’ of the college. Hanging around at hucca joints, watching movies, buying the trendiest clothes, attending with friends becomes the everyday affair. This therefore amplifies the need for money.

The role of parents in this scenario becomes very critical. Parents need to be observant of their child’s behavior. They must control the usage of money by their children so that they do not turn into avaricious kids in future.
Outflow of surfeit money from the parent’s end, results in the child not realizing the value of money and spending injudiciously.
Parents must make a conscious effort to train the child to use money in wise and controlled manner. The value of earning money and its handling should be taught to the child from a tender age itself.

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