Lets discuss in depth about the financial literacy of kids, this is one of the most important topic many people avoid talking about.
Now in our society the majority or 90%+ of the kids do not know about their parents income sources or business.
What they do and how do they earn? we as kids do not know about this and nor does our parents thinks its important to tell the kids.
In simple words, they tell you to focus on your studies and avoid talking about this topic, that is why there is so much unemployment in the country.
Also Read: Life Changing Events (Financial Planning)
There are lots of thinks taught to kids and also there are lots of things that are not taught to the kids. Those which aren’t taught to kids is Financial Literacy.
Financial literacy is not taught in the school nor in the madrasah nor does the family teaches you about this real important topic.
Now just look at your society, how many kids do you think knows about their parents income? I think none.
Now, I personally have seen so many parents in Pakistan. They literally kill their kids creativity by not teaching them Financial literacy.
Its part of the life, that is why most of the people reaches to university level is still dependent on their parents to pay for their college or university fee, its not just the fault of the kids but parents are also involved in this.
How Do We Educate Kids or How Do We Teach Them About Financial Education and Business?
1) Create Excel Sheet: Once you have created an excel sheet try adding 5,000 PKR (Pakistani Rupees).
This 5,000 PKR should be for monthly basis, if the kid demands for an Ice-Cream or demands anything try cutting that from his 5,000 PKR.
It helps him to learn Credit, Debit and Balance.
When a kid demand for anything ask him about his balance. if the balance exceeds his demand. In short, he can’t have that product.
Another great thing in this excel sheet is that that kid won’t disturb you again and against. its because he already knows. how much balance he has.
Add his Eidi in his excel sheet or if anyone gifts him any amount try adding that in his excel sheet.
Don’t forget to teach him about Zakat. Also remember he is a kid its not obligatory for kids to pay Zakat but he should know about all this, if he donates any portion of his amount, he will always remember it and as he grew up, he will keep donating and giving Zakat to needy.
2) Involve Kids in Home Budget: Parents ought to involve their kids in home budget so, they know everything, how much each item costs.
How much is the Electricity or Gas or Internet monthly bills. If you turned on your AC while you are out of your Room, how much extra bills you need to pay same goes for Heater or Lights.
He must know. how a rich spends his life and how a poor spends his life without these facilities.
Watch Zeeshan-Ul-Hassan Usmani Video on Financial Literacy of Kids