Money tips in Lockdown: Don't waste time, teach your children about wealth - Top 5 lessons to prosper

Money tips in Lockdown: Coronavirus lockdown has been extended till 17th May 2020. But, instead of wasting time watching TV or fooling around on a smartphone, if you really, really want, you can actually do something that will give immense returns going forward not just to you, but your future generations too. You can teach your children about money - how to save it, grow it and even make it. They are a captive audience at the moment! Remember, who knows when you will ever be able to spend this much time with your children again at one go. So, as a parent, it's your responsibility to make your children know the importance of money. You will be empowering them with this critical gift of financial knowledge that will always keep them safe and away from harm. So, in case they come across a financial crisis, like the one wrought by coronavirus pandemic, then they will know how to get through it on their own. Keeping that in mind, here we list out the top 5 money lessons that we can teach our children during the COVID-19 lockdown:

1] Savings: During lockdown, we have come to know the importance of savings and hence, first and foremost lesson that we need to inculcate in our child is its importance. For this, we can inspire them by giving some money every day and reward the one who saves maximum. It will make them spend only on those items which they think is important. A game can easily be played by the family on this without having to step out. Then there is always e-commerce websites. You can also teach them how to grow their money by introducing them to small savings schemes like Public Provident Fund (PPF), Post Office saving schemes etc.

See Zee Business Live TV streaming below:

2] Spending: As said earlier, giving your children regular amounts of money and asking them to save as much as they can is important. Also, equally, if not more important is that they will come to know about spending - they should come to know about what items are important and what are not. You can teach them that what they can live without, should always be avoided. By this way, they will be able to know about he good spending and bad spending habits. The faster they come to know about this, the graeter will be teh value of this knowledge.

3] Taxing Times: By now, kids must have learnt that tax is a bad word from your reactions every year when it comes to filing your income tax. Well, teaching your children about taxes is important. You can teach you children as to why one should pay income tax and how this tax is used by the government. It will make your child a a good citizen and a dedicated taxpayer in future. And yes, do point out that keeping control of your mood is important while filing tax too as tax is good for the general good of the nation.

4] Role of investments: During lockdown, we can teach our children about the investments and its role. We can showcase this through our spending and its current value to our children. We can show them a projection about how much we can expect to get returns from it at the time of maturity. It will help them realise about the investment goals and plan their future after becoming financially in dependent. Remember the small savings schemes e talked about a bit earlier? You can actually get them to open such accounts and make sure they keep a track of it.

5] Interest Rate Payments: During lockdown, you can ask your children to get lesser pocket money as they are not going outside. In return, you can offer them some benefit like bonus on payment left with you. By doing this, you not only let them know about forced savings but also about how interest rates work. SHow them how this money that they save will be useful for during a financial crisis.