Father's Day 2023: Here are 5 financial lessons that fathers can teach their kids

Father's Day 2023: International Father's Day 2023: International Father’s Day falls on the third Sunday of June and this year it will be celebrated on June 18. Father’s Day is dedicated to all fathers, grandfathers, and forefathers for their numerous sacrifices, and imparting moral values. The day acknowledges the contribution of fathers to an individual, families, and societies at large. Here are 5 financial lessons that every father should teach their kids for a financially sound future.

1. Budgeting 

Budgeting is a fundamental skill that fathers could teach their children. According to Anup Bansal, Co-founder, Scripbox, fathers can explain the concept of income and expenses, and guide them in creating a simple budget. 

For instance, if a child wants to save for a new bicycle priced at Rs 7,000, he/she can create a budgeting plan. If the child receives a Rs 500 weekly allowance, he/she can allocate Rs 300 towards savings and Rs 200 for other expenses. By consistently saving Rs 300 per week, the child will gradually move closer to the goal, reinforcing the values of disciplined saving.

2. Giving allowance 

Most parents give their children allowance on a daily, weekly, or monthly basis, this helps kids in inculcating a habit of savings more and spending less. To understand the importance of hard-earned money, Bansal recommends making children work for the money through age-appropriate tasks or chores.

Also Read: 5 financial gift ideas for your father 

3. Need vs Wants 

It is necessary for children to understand the difference between needs and wants. According to Bansal, fathers can teach the distinction by simply encouraging the kids to evaluate their spending choices by asking questions like, "Is this something you truly need, or is it something you want?" By instilling this discernment, dads teach their children to make mindful financial decisions with perhaps greater inner peace.

4. Saving and Investing habit

It is often believed that saving and investing from an early age can help in creating wealth. Thus, Fathers can teach their kids the importance of saving for the future and introduce them to the concept of earning interest. Bansal recommends encouraging kids to set savings goals and reward their achievements.

5. Discuss financial consequences and responsibility

Fathers can help their children understand that money is a finite resource, and spending irresponsibly can have long-term repercussions. Thus, fathers should discuss the consequences of impulsive purchases or excessive debt, emphasising the importance of responsible financial behaviour. Bansal advises teaching kids about credit scores and the impact they can have on future opportunities.

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