Money Skills

It was the morning after the grand Pongal celebration, and the air in Aathirai’s home still smelled of sweet Pongal and sugarcane. Naughty niece’s presence doubled her joy. How could they miss the grandparents’ blessings and Pongal inam (gift)? Her athai also pressed a crisp ₹500 note into her palm with a warm smile. Both kids were overwhelmed with the money.

Money skill is what Aathirai does with the money right now, like: Count the money correctly. They had a brief plan of what to do with the money. Went to the nearby shop, compared prices of toys & earrings, and paid for it. Bought a cute dress for her little sister. She always remembers her grandma’s words, “You need to care for your loved ones as much as you care for yourself.” Thinks twice before buying other stuff. Put some money in her piggy bank. Gave part of the money to Appa to invest for the happy vacation.

These are some actions.

Money skills are practical habits of handling money wisely. Some of the examples are: Saving habits Budgeting Planning before shopping Comparing prices & value for money Bargaining Protecting assets through insurance Diversifying investments Understanding the real cost Evaluating risk & rewards Organising finances

Currently, kids learn money skills by observing parents. The best gift could be giving them real experience, opportunities, and practice to enhance this much-needed life skill (money skill). Financial literacy is a broader understanding of money matters. Knowing why should I handle money this way or what will happen if I don’t?