Importance of Pocket Money For Kids & Parents (Part:1)

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Yeah.. I am talking about Money first time on My Blog . After 12^th std of my studies, once I started going colleges, I was always interested about understanding relation of our Life with Money and after finishing College study I was inclined to Financial planning. I started looking around and exploring the diversity of life and observed that People are running for money. If you ask people, why do they live ? Most of them would answer without hesitation that they live for Money, they live for money to fulfill the basic requirements of their family, after all money is needed by every person to live gracefully in society, although limits (how much money?) always differ.. person to person with age, place and necessity.

So dear readers, this blog is about POCKET MONEY.. the sweetest form of Money. This is sweetest because, we just start getting it from our lovely parents.. right there in our home. For rest all other forms of money, we have to work hard, we have to go out, we have to work under Boss , we have to make lots of compromises and blah..blah and blah.

Pocket Money is  an amount of money given to children every month to  fulfill their needs. It is small amount of money given by parents to meet the petty cash expenses of their kid.

It may be used by them for spending on :

-     --     Candies

-     --     School lunch / breakfast

-     --     Toys

-     --     Books

-     --     Gift

Children can spend their pocket money to  themselves, their friends or family members. Generally , pocket money is given on monthly basis, sometimes it is given on periodical  basis during special occasion and festivals also. Some families believe in paying pocket money to kids on adhoc basis too, as and when required and demanded by kids.

Pocket money may be needed to those kids specially , who used to go school by Bus. The amount may be useful while camping, picnic also. It may be used as an emergency / contingency fund during any accident or unseen event.

I personally feel that if we maintain a discipline about Pocket money, we can teach several important aspects of money and life using and setting some principles about it.  I would like to mention that Pocket Money  is the foremost and important stepping stone to Money-driven world. If we wish to secure the future of our Child financially, we can use this simple tool to teach the basics and importance of Money. Parents may differ with my ideas and perspectives to allow pocket money to kids or not, but I advocate for it. The child can feel responsible and important after this initiative.

When to Start :

Like other skills, Child learns attitude and get used to Money from home. The best time to start may differ for rural and urban areas, I think 3+ year Age is suitable to start. Children learn to identify coins and rupees by the age of 8+ year year and can buy chocolates , ice cream etc . They should be able to use basic mathematical skills as like Addition, subtraction also. Although, it is needed to monitor their money management till they grown up and start earning their pocket money / salary, specially till 12^th std.  Just gift them a “Gullak” or a  money box, you may mark this date in your Diary. This little event may change his life positively. Now, the child would start making choices, saving and waiting for the things they want. You can realize the development of sense of responsibility and independence about money after issuing Pocket Money first time.

How much  Pocket Money :

We can not devise or use a formulae. It depends upon family income, family budget, lifestyle, education standard and age of the child also. It depends upon residential area / locality. We should also  think about the pocket money given to their friends also. Take account of bus charges / auto charges to school, breakfast / lunch expenses estimation before fixing the pocket money. The pocket money should be reasonable and comparable. If it is less, it could lead to inferiority complex. The money may be increased with progressing age and need of the child.  You may start by as low as Rs. 100 per month, set the limits as 40 % for saving, 20 % for emergency needs, 20 % for chocolates and balance 20% for stationary needs. Monitor and review their requirement and expenses for first 3 months and then you can judge the reasonable amount yourself and the child would be satisfied also.

You can top up their pocket money by incentives , as and when required ( as per special occasion, festival , summer vacations or  special achievement). You can ask them to help in household activities as like – Gardening, house keeping, maintaining cleanliness, helping family and others.

You can increase their Pocket Money once in a year , increment date may be new session of study or birthday of your child.

Advantages

We can teach several important aspects of Money to our children using the Pocket Money technique. Some points may be :

•  The value of money,
•  Useful Spending : needs & habits,
•  Importance of earning money,
•  Why and How to save money,
•  Simple Interest, Compound Interest, Inflation
•  Borrowing and repaying
•  Basic Accounting and maintaining a Ledger
•  Basics of financial and money management.

We can teach them about Budgeting and Financial Planning basics too. This will help them to understand and practice the benefits of Planned expenditure and savings.

It is not necessary by child to spend all the Pocket Money for the given period. Motivate and train them about Saving. The child should write down the expenses date wise, head wise. They  should put a side  some % / fixed part of the pocket money for Saving. Ask them to prepare a Contingency Fund. Help them setting up their short term and Long term financial requirements, planning and meeting the goals. They may save their pocket money to buy a gift for their parents  or siblings too, if it is costlier one . If the saved money grows up to  a substantial amount, the same can be transferred to Bank A/c. It is also advised to open a Joint / Kids Advantage Bank A/c in the name of child. If the child grows up and particularly after the age of 10+, you should make him aware about banking practices also, i.e.

-          How to deposit money

-          How to withdraw money

-          What is Interest, how it is calculated and compounded

Risks

As we know that every good thing has bad aspects too if mishandled. So be cautious about the money spending habits of your child. Check his ledger / notebook (given to him for maintain and writing about expenses). Check if there is any pattern of expenses. Cross check about their spending habits if seems doubtful.

You must explain your kids about how to spend and when to spend . Advise them that they are independent to spend the money but as per set directions, principles and limits.

Although pocket money is often treated as casual fund in regular house hold budget, but it has importance and the concept can be used effectively by parents to develop understanding of money matters to child right from their early age and it would be very beneficial with age. Remember It is one of the first way to let them learn the basics of Managing Money ..the very important skill needed for life ahead. Do one thing for sure, encourage them for SAVING. They may start it by collecting coins and currency notes marked with images.

I hope for your valuable comments. Do wait and visit again if this topic sounds interesting to you, I have lot more to share about Tips on Financial planning..

Copyright@Santosh Kumar, 2011

Picture courtesy : Google Images

Tips for Enjoyment and Relaxation (Part:2)

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(Holidays & Sundays)

Continued from Last Blog. dated : 14.09.11

Generally people spend a large amount of money to purchase things or services to make them Happy, they have to move outside of Home to get enjoyment. They go to parties, join some clubs, gradually they start spending quality time outside their home.


If they do not understand reasons well in time, they make distances with their family in the pursuit of Happiness. Sometimes they have to seek advise of Consultant to explore Enjoyment in daily life.


During weekdays, it is hard to share ample time with family members, but we can utilize Sundays and holidays to bridge the gap and meet family grievances by spending quality time with them. It would not only make them happy, you would also share this big deal too.

I am submitting some tips, these are practical ones , most importantly … very economical ones, you have to be with family and mind the given suggestions.. 

Morning :

• Surprise your spouse with bed tea, Remember that aroma and taste of the tea should be better.
• Go for a long walk. Feel the beauty and greenery of nature.
• Spend sometime in your garden, involve kids, plant some new flowers, teach them Gardening techniques.
• Organize your Home, remove clutter from your desk, maintain separate files for important documents.
• Wash your vehicle, ask kids to clean their cycle, roller skates etc too.
• Enjoy bathing with kids, teach them to arrange their cloths and accessories,
• Enjoy a family Breakfast with lot of chit-chat conversation.

Noon

• Take account of kids studies, check their notebooks and teacher's comments. 
• Teach something new to your kids to enhance their creativity.
• Call your friends and relatives whom you miss a lot. Delete unnecessary sms and phone no from your mobiles.
• Do something to speed up your PC/ laptop , as like disk cleanup and defragmentation.
• Watch some knowledgeable content on TV channel.
• Join your spouse in kitchen with kids , Cook some new receipe and enjoy Family lunch.
• If you love and miss naps after lunch on weekdays, you can enjoy 2-3 hours sleep also, if not interested with Sleeping, Read a good Book..

Evening

• Play a game of cricket or hockey with family members and kids. Involve your neighbors and their kids too. You will get a chance to know them also, who used to play regularly with your kids.Train them the basics of the game too if you can.
• Motivate your spouse to learn driving scooter  / 4 wheeler etc, if she is not skilled.
• Visit local worship place to participate in prayer, teach kids about spiritual ritual and beliefs being followed in society.
• Go for shopping , your spouse would love too, it may be that during week days, she has to go for shopping alone. Two person can make a good deal and bargain effectively.
• Visit local grocery store with your kids and let them learn about identifying quality vegetables, fishes, meat etc.
• Pay visit to your local  old aged relative, spend some time with them.
• Visit to your new neighbor and enjoy tea during introduction. You can develop your relationship as new family friend. A good neighbor is as good as a good relative or friend.
• Arrange a common prayer session of your family members.
• Enjoy movie at local multiplex or you may opt for watching a new DVD at your home also.

Most important thing, never miss a chance to chat with your wife as and when you feel free. Don't think about place or time to start the conversation, just be with her and share her ideas and feelings regarding several issues. She can inform you about your kids good and bad habits, their performance at school etc.

She will be happier, you may explore hidden aspects of her personality and she would enjoy your company all the way.I am insisting on this point because I have experienced that We should respect the individuality of our spouse. Our likes and dislikes may be different, but we can share the feelings. She bears greater responsibly to perform, we must explore the ways to please her. She can make your day.. she can be inspiration behind your success. After all She is the "Better Half"   of our life.

 I have learnt that people who seek "Happiness" outside their home and love to spend quality time with outsiders (persons , not in the group of family or friends), they have to suffer and remain restless in future too 

All the mentioned tips would enrich your life with enjoyment directly or indirectly, sooner or later. You must give these tips a try.. no side effect at all. I repeat and  insist  explore "Happiness" inside your Home, along with family members. The Gods of happiness are all around you... your spouse and kids. If you belong to a joint family, then  its a BONUS for your Happy life. 

Wish you all good luck and happy life.

Picture Courtesy : Google images

Tips for Enjoyment and Relaxation (Part:1)

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( Weekdays)

Modern day's life is very stressful. Everybody is in hurry, it is very confusing that people love to perform multitasking or they are forced to perform multitasking (to complete several tasks in limited time). We all are sick of being stressful, every second person is living with fatigue. Psychological disorders are common in Metro cities, if continuously ignored, these disorder leading to severe diseases as like BP, Heart Stroke,hyper Tension  Alzhiemer's disease etc.

People used to spend a large amount of money, they have to move outside of Home to get enjoyment. Sometimes they have to seek advise of Consultant to explore Enjoyment in daily life.

I am submitting some tips, these are practical ones , most importantly … very economical ones. Try some of the tips, you would learn to Enjoy in your daily routine also :

Morning

• Start waking up early in the morning , if possible start your day in “bramha muhurta”, just 30-60 minutes before Sunrise.
• Go for a nature walk. If your spouse or kids joins you, that is a bonus for the walk.
• Feel the freshness of air and fragrance of flower.
• If you spot morning dews on grass, walk with naked foot, it heals your eyes.
• Back to your home, sip a cup of tea with wife.
• If you have spare time and you are not in hurry for office, you may assist your wife in the chorus of preparing children for schools.

Noon

• Switch off your mobile phones during Lunch.
• Share your Lunch with colleagues , start a light hearted conversation.
• If you can manage 10-15 minutes of spare time, enjoy nap or just close your eyes for 10-15 minutes. Don’t think about any serious subject during the course.
• Walk around your workplace, don’t say or ask anybody, just watch them performing their tasks. Just be there as a witness. Do not think, do not compare.. do not analyze or judge.

Evening

• Pack your bag. Keep your personal docs properly.
• If you are using your personal vehicle, you may switch on FM or selected playlist of songs.
• Buy a bunch of flower to surprise your wife. It would also decorate and spread fragrance to your drawing room.
• You may buy some chocolates for your kids.
• If you can reach at your home before 2 hours of Dinner time, you may enjoy  tea or coffee with wife. You may chat with your kids about their day at school or  gossip with your wife.
• If she has gone through a busy / stressful day due to heavy work load of house hold activities, you may help her while cooking also.
• You can read book of your choice.

• You may join your kids while watching a cartoon show for ½ hour.
• Ask your kids to  - draw favorite cartoon character or face of their friend.
• Sing a song
• Dance with your kids

Have dinner with your family. Remember, Eat together to stay happy together.

You can help your kids to improve their table manners and etiquettes too.

              

Read a story to your kids to help them for sleeping. Watch their innocence if they get asleep in the middle of the story.

Go to bed early and have a sound sleep, it is necessary to have 6-8 hours sound sleep for a working professional. Late night TV watching should be avoided, If you love to write Diary, you may give some time to this hobby too before switching off lights.

I would welcome your comments and suggestions on the subject.

Photo Courtesy : Google Images

Daily Prayer of a 9 year Kid

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My elder son 'Manu' pasted a written paper in Puja Section of our Home, I observed the contents , 

Prayer To God

Dear God,

I love you above all things, I'll do everything to please you. Please give your blessings to me and my family whole life.

For Mummy

Help mummy to get large amount of energy for doing work and help when she feels tired.

For younger brother(Kabir)

Make my brother 'Kabir', the most popular scientist in the entire world. Mummy also wish him to be an IAS officer, so make it possible too. First of all Kabir have to build a Robot for me  (which can play with me) and help mummy doing her house hold works.

For Daddy

Help Daddy to earn a plenty of money by doing a little amount of works. He has to work hard for office. He devotes maximum time to his office responsibilities and I have to suffer due to the same. Sometimes, he remains busy at office on holidays and Sundays too.

........So this is the daily prayer of  my 9 yr old kid.  I just wondered after reviewing his requests to God. He has not demanded anything for self, he just requested for his parents and younger brother. I became very emotional to know how much he cares for us.


Now, I have started following his blog dreams-of-manu.blogspot.com ; he has started expressing his views about different aspects of life. 


Sometimes, I feel regretful when I can't share time with my kids. But, I love them very much. they are very special to me. 


God bless you my child.