Why Teaching Kids About Money Still Matters (Even if They Already Know What UPI Is)
Let’s face it—today’s kids can order food, shop online, and invest in crypto, all before learning to make their bed. But can they save money? That’s the real question. For middle-aged Indian parents, teaching kids about the value of saving isn’t outdated—it’s essential. In a world where “one-tap purchase” is a way of life and “savings” is just what’s left over after Swiggy and sneakers, instilling financial habits early is more important than ever.
Money doesn’t grow on trees. (We checked. Still true.)
The Good Old Days: When Saving Was a Family Tradition
Two decades ago, Indian families treated saving like a sacred ritual. Remember those clay piggy banks you had to smash to get your ₹50 note out? That was our version of breaking the bank. Children were handed crisp ₹10 notes on birthdays, Diwali, and even for doing nothing in particular, but with one strong advisory: “Don’t spend it all at once.”
Opening a savings account at age 10 was practically a rite of passage. Buying something expensive without a year of saving up? Unheard of. Parents didn’t just talk about money—they modeled caution and planning. They didn’t need to say “money doesn’t grow on trees” because their entire financial behavior proved it daily.
Now vs Then: From Piggy Banks to QR Codes
Fast forward to today, and it’s a different world. Kids see money move via QR codes, cards, and apps. Cash is almost mystical—a legend of the past. They don’t count coins; they count cashback notifications. What changed?
For starters, easy access. Middle-class families today are more financially comfortable, and children are often given what they want without needing to wait or earn it. EMIs, credit cards, and buy-now-pay-later schemes have replaced savings goals. The line between “need” and “want” is blurrier than ever, and kids are growing up watching spending, not saving. Soft parenting also plays a role. Many parents hesitate to say “no,” fearing it’ll hurt their child’s confidence. But saying “yes” to every spending request may quietly teach that money is infinite and effort is optional.
Spoiler: it’s not.
The Impact on Kids Today: A Mixed Bag
On the plus side, children are financially aware in ways we weren’t at their age. They know what stocks are. They understand the concept of investing. Some of them even talk about passive income while still studying for their board exams. Not bad. But here’s the flip side: many don’t understand delayed gratification, budgeting, or the difference between “can I afford it” and “should I buy it.” Instant access has dulled the thrill of saving.
Spending is easy, and without proper guidance, saving becomes an afterthought, if at all. As a result, we’re seeing young adults with high spending habits, low savings, and rising debt—not exactly the best combo to carry into adult life.
What Can Today’s Parents Do?
Middle-aged parents are uniquely positioned: they’ve seen both sides of the coin (pun intended). They grew up in savings-driven homes and now raise children in a spending-driven era. So, how do you bridge the gap?
Start with Real Conversations, Not Lectures
Skip the long monologue. Instead, talk to your kids about your own money stories. Tell them about the time you saved for a year to buy your first Walkman or how you chose a second-hand phone over a new one and didn’t die of shame.
Relatability beats rigidity every time.
Introduce Structured Pocket Money
Rather than handing over cash whenever asked, give a fixed allowance with a simple framework:
- Save 30%
- Spend 60%
- Give or invest 10%
Make it flexible but consistent. Let them feel the pride of saving up for something instead of getting it instantly.
Use Goals to Make Saving Fun
Want a new toy? A new cricket bat? Let them save toward it. Helping them set small, achievable goals introduces discipline and patience—qualities that no Instagram ad will teach.
Show, Don’t Just Tell
When you’re planning a vacation or buying groceries, talk through the budget with them. Involve them in simple decisions. Even something like comparing two snack brands for value is a lesson in financial decision-making (and maybe in choosing the one with more chips than air).
Use Digital Tools… but Don’t Rely on Them Alone
Apps like Junio or FamPay can make money tracking fun for kids. But no tool can replace the example set at home. When kids see parents planning purchases, avoiding debt, or discussing monthly expenses, those lessons sink in deeply.
And yes, it’s okay to say, “We can’t afford that right now.” That’s not financial failure—it’s financial wisdom.
Two Paths, Two Futures: A Tale of Two Children
Let’s consider Aarav and Kabir—both 12 years old, both from middle-class families.
Aarav’s parents give him a monthly allowance with clear rules. He learns to divide his money, save for things he wants, and gets small bonuses for hitting his savings goals. By 18, he has a modest bank balance and an understanding of basic financial tools. At 22, he’s budgeting his income, saving monthly, and even investing in mutual funds.
Kabir, on the other hand, gets money whenever he asks. No limits. No expectations. He spends freely, upgrades gadgets impulsively, and rarely thinks beyond the present. At 22, he’s accumulated debt, lives paycheck to paycheck, and feels overwhelmed by the idea of saving.
The difference? Not income, but intentionality. One learned to respect money. The other was never taught how.
Conclusion: Raise a Saver, Not a Spender-in-Chief
In today’s fast-moving, digitally powered economy, the old-school lessons of saving are more relevant than ever. As a middle-aged parent, you don’t need to be a financial expert—you just need to be consistent, intentional, and open. Teach your child to save not because times are hard, but because knowing how to manage money makes life easier, calmer, and more independent.Road to Wealth by R. Poornalingam isn’t just a book—it’s a starting point for that journey. Consider it the most impactful gift you can give your child today. Because long after the gadgets are forgotten, the value of financial wisdom remains.
Remember, you’re not just handing over pocket money—you’re handing over life lessons in bite-sized rupee notes.
Raise a thinker. Raise a saver. Raise someone who knows how to build wealth—not just spend it.
