What Kids (6 to 10 Years) Should Know About Money

In continuation to previous post What Kids (3 to 5 Years) should Know About Money, now move further ahead for kids whose age between 6 to 10 years. 

Kids (between 6 to 10 years old):

1. There's a difference between THINGS YOU WANT and THINGS YOU NEED.

Following activities are needful to realize: 

• When you are out for shopping, point out essentials such as food and clothing, and ask your child to describe items that she may want but are optional.
   
• Talk about how your family decides what to buy and what to pass up. Which is more important, buying cookies or fresh fruit? Soda or milk?
   
• Draw a circle and divide it into sections for food, rent or house payments, clothes, and "optional items," to show that there is a finite amount of money to spend.

2. You need to MAKE CHOICES about HOW TO SPEND YOUR MONEY.

Following activities are beneficial:

• Include your child in some of your small decisions. For example, at the grocery store, explain why you pick one item over another.
   
• Give your child 10-30 Rupees and let her / him choose which fruit to buy.
   
• When shopping with your child, ask yourself aloud: Do I need this item? Can I borrow it? Would it cost less somewhere else?

3. It's good to shop around and COMPARE PRICES BEFORE YOU BUY. 

Following activities are useful:

• With your child, compare prices for a particular toy at various stores.
   
• Ask for discount / negotiate for price and show your child how much you are saving. There is not shame on asking for discount / negotiate.
• Consider allowing her to keep part of the savings, if she / he helps ask about discount.

4. It can be COSTLY and DANGEROUS to SHARE INFORMATION online.

Now a days most of the kids have access to internet, so little precautions are needed on this side as well. Following activities are useful:

• Know the websites your child visits.    
   
• Decide which websites are appropriate, and block any inappropriate sites using parental control software.
   
• Make it a rule that your child never gives out any personal information—like her birth date, address, phone number or school—when on the internet.
   
• Don't allow her/ him to buy anything online without your permission.

5. Putting your money in a SAVINGS ACCOUNT will PROTECT it and pay you INTEREST.

• Visit a nearby Government Bank, Government Undertaking Bank or Post Office with your child. You can use some story on RBI site to explain importance of Savings account in individual's life.
   
• Ask about the interest rate on a Savings Account. Illustrate her / him the power of interest / compounded interest.
   
• Discuss with your child how money in savings accounts is protected by Government driven body insurance. If the bank goes out of business, she will get her money back.
  
• Open a savings account for your child.