Today, most of our transactions are dependent on Plastic Money. Whether it’s our grocery bills, restaurant tariff, house rent, etc., all we know that credit card is to our rescue. Talking in a common man’s terms; as parents, is it the right lesson that we are teaching our children?
The youth of today is growing with a belief that they can afford all that is there in the cart with a mere plastic card. I am afraid!! What affordability lessons are we teaching our children?
The behind the scene effects of using a credit card is rarely shared with kids. By saying this, I do not mean that we share all our financial secrets with our children, but yes!! They need to know where to draw a line. Our children need to understand that its affordability that defines the purchasing power of an individual, and not the number of plastic cards that are there in their purse.
Kids have the habit of asking for all those things that are showcased in a mall. A few just can’t say “NO” and hence, they oblige to buy. Some parents, merely deny which upsets the child and the parents, as well. A couple of parents will convince the child for an alternative product in order to avoid issues at the check-out line. The best option is to make your children understand about the household expense and how all have to go by the same, in order to lead a comfortable and a hassle-free life.
This basic knowledge is crucial especially if you are paying a lot of EMI’s and have a few loans to repay.
I wish to share a few points; which I, as a parent try to inculcate in my child:
- Make your children understand that there is something called as “Spending Priorities.” Ensure that they know that a few things like electricity bills, school fees, house rent, etc. are more important than a PSP or a Tab.
- The most important thing in the present scenario is to help them understand the fact that plastic money is not for enjoyment but can rescue us when we are in dire need of money. (Medical bills, School fees, etc.)
- Not to miss on credit card, is the high rate of interest that one needs to pay in case one fails to repay. Help them know that this interest can imbalance their budget completely.
- Involve your teenage-ager when you are discussing cutting back. Let them come up with their views on where you can cut additional expenses in order to balance your budget. When children are involved in such discussions, they will take an active part in the actual cost-cutting plan that was finalised.
It’s you, who is responsible for building the mindset of your child at an early age. These little steps will make your child more responsible and will help him/her take smart financial decisions in the future. If our children learn to spend within their means, they will certainly grow up with a completely different attitude towards their paychecks.
Use Plastic Money wisely!! For the price you may pay for the same, can either build or ruin your child’s attitude towards spending completely!!