Children get some sort of monetary benefits (like cash) from grandparents, relatives, or even parents.If this pocket money had been invested in the right way it would have turned into a few lakhs when your children start going to college.

Do you see the importance of financial education to children?

It’s a habit that when elders visit the kids or even baby they give some monetary benefits (like money) to children as a token of love or gratitude. Even grandparents give some money as a token of love to their grandchildren. Parents are no exception, right from birthday the children are given with toys, dresses or some money. Usually, as a kid, we used to save that money in the piggy bankdecisions.

A study from the University of Cambridge has shown that children understand the concept of money as young as 7 years. But when compared to later years of their life the understanding of money seldom exists. It’s better to start a relationship with finance at a very young age so that as they mature they make a better financial decision.

My Final recommendations, let the children be exposed to a financial discussion at an early n age.

They will get comfortable with money and making them work in their favour. Have a conversation about money, stocks or SIP while having dinner.

Open a minor saving account as young as a 1-year-old kid. Put all the money that relatives or friends gave or birthday money into that account.

Open a Demat account, teach them to invest part of their pocket money in mutual funds SIP. Slowly it will grow into a huge corpus.