Today's Youngsters and Personal Finance

In today’s time , it is said that the 21^st Century belongs to youngsters , which comprise of kids , teenagers and youth . It has become very important nowadays to provide knowledge of Personal Finance within youngsters also , so that they can start spending and utilizing the money given to them by their parents in an efficient manner . The following are some steps which parents can teach their child or children regarding Personal Finance .

            One way is to make a child aware that how much does a thing cost . If the family bread earner is a Service Man or Service Woman then the child should be told that how expensive an item of his / her choice can be . The child should also be told about things like Month Ending , when the monthly income money usually amounts to it’s minimum and unnecessary expenditure on leisure items like toys should be avoided .

            Another way is to tell a child not to unnecessarily demand for money for spending on leisure items or services , whenever they like . If a child is given pocket money by his / her parents then the child should be also be given with a piggy bank for storing the received pocket money as this encourages the child for storing and saving money . If the child is not given pocket money then the parents should tell the kid that his / her demand which involves monetary expense will only be fulfilled , if the parents think that it’s justified . The child can then be prevented from becoming arrogant and will understand the important aspect of Personal Finance that is Money Saving , when he / she will enter into teenage which is a very crucial phase of an individual’s life .

            When a youngster turns into a teenager , then the parents can also open a Savings Bank Account in the child’s name for the saving of pocket money . Parents can also encourage their child to go for a Summer Job , which can be like a training for the teenager and he / she can also get a stipend for that Part Time Summer Job . By this the youngster can save his / her earned money also into the Savings Bank Account opened by the parents . After Piggy Bank Savings , this Bank Account Savings is the next step towards a youngster’s Personal Finance Understanding .

            Lastly , when a youngster turns into a fully grown youth and is in college , the parents should train him / her in how and where to invest money , to handle Personal Finance more efficiently in the future . Here , providing practical knowledge about various financial services like Fixed Deposits , Mutual Funds and Stock Market Shares is very important for the youngster to know . These are some steps which parents and their youngster children can exercise so that youngsters can also become well aware of their Personal Finance Utilities . If steps like these are applied by youngsters then they will have to face minimum problems in their future life and they can also be prevented from turning into spendthrifts , as overspending of money is bad for Personal Finance .