During one of my recent workshops with teens on financial literacy, one of the participant wanted to purchase a new mobile handset (rather all of them wanted to) for Rs 15000. When I started talking on this and probing the reasons why he needed a new handset, the reply was not something that, I had expected. He said “If my Dad can have a mobile of Rs 32000 it’s not a big deal if I have a handset worth 15,000.”. A Child of 16 years actually compares himself to his parents on spending, but does not want to get in the same shoes, when it comes to earning, as he thinks he is still young, when it comes to earning money.
Today most of the parents with whom I interact have a common problem. They say that their kids treat them like ATM machines. Whenever and wherever they demand money, it has to flow into their pockets. When at one end they want their kids to get the best of the up-bringing, at the other end it is equally important to make them realize what is a NEED and what is a WANT.
Most parents would not like if I tell them that their kids, especially the teenagers would try to imitate their parents as far as spending is concerned. Right from childhood they have accompanied their parents to various places like malls, cinema halls, markets and have started getting early lessons from those places. Unknowingly they have seen them and have formed some kind of impression about money and the way it is spent. It is very important that they understand the value of money as early as possible and understand that there are few other things that can be done with money, other than SPENDING. Another important factor is that we as a family still do not want to discuss family budget with our growing kids, making them understand what is the source of money and what are the expenses that the family as a whole undergoes on a monthly basis. As the child grows and starts demanding money for his/her NEEDS/WANTS, it is important for the parents to make them understand what is the source of Income from which the spending happens.
Some months ago I was interacting with class X students who had Farewell at school. One of the girl child’s parents informed me how adamant their daughter was to buy a sari worth Rs 3000 for a function of 2 hours and it was very difficult for them to spend that amount as they were tight on the budget. When I spoke to the Child, she was a clear case of peer pressure where her school friends had not only bought new saris but also booked parlours and were going to spend at-least Rs 2000 for the makeover at parlour. It took me a while to make her understand and explain to her about delayed gratification. Finally she agreed to go with one of her relatives’ sari and not spend that money.
Parents often keep complaining that the current generation is too forward. When we were of the same age our behavior and attitude was very different.But I would like to differ on this point, not completely but to some extent. Let me explain. When we were in our teens the options we had were very limited. We had one DD channel, today’s generation have almost 200 channels. We had only 1 MTNL as telephone service provider, today we have at-least 7-8 of them. For shopping they have malls and supermarkets. Now just imagine if we as adults sometimes have difficulty when we have lot of choices, so what can we expect from the children? In-fact when we agree that they are ahead than their generation, why not channelize their thoughts in right direction and give them the advantage of being forward.
Today’s teenager should be introduced to the concept of money at an early age. The school curriculum would teach the child how to earn money and be a responsible person in life. What to do with the earned money is rarely taught in school. Introduce to them the value of savings v/s spending at an early age. As the first impression is the last impression, don’t let your child have an impression that MONEY = SPENDING. Take a step today to make them FINANCIAL LITERATE.
