If we study the economic conditions of ancient civilized society, we will come to know that people used to exchange goods and services for other products and services in return. This system is known as a barter system. This practice continued until money was not invented.
This exchange of goods or money is only meant to meet the needs of people in any civilized society. The basic needs of people are food, shelter, education and medical.
From ancient society to modern society, there has been a significant increase in human needs. In the era of advanced technology; everyone is aware of various things around the world. As a result, the need for money is not limited to, meeting basic needs, but people have become competitive and ambitious. They have ambitions and desires to achieve big things.
Whether it is higher education, assets, luxury items, or medical assistance, we require money for everything. Money has a significant effect on our living standards. As such the necessity of money has grown very high and it has become an essential part of human civilization.
Although true happiness does not lie only in keeping wealth, we need other things too to be truly happy in life. However, we cannot deny the importance of money in our lives.

The quiz below will help you know how to introduce financial literacy to your children.

Quiz

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1. If parents teach the children about value of money, children will

Understand the value of money and therefore will start focusing on their education and career.

Not focus on studies but will become money minded

will not be able to understand the value of money because they are not so mature.

None

2. To develop a sense of responsibility for spending money, you

Let them buy all the stuff your family needs.

Give them some monthly allowance for their expenses.

Tell them about inflation.

None.

3. Shopping is an experience which can be utilised to

Show the child how things should be bought.

Give them a little money to buy a product which is included in the shopping list.

Encourage your child to find different brands of that product and see the price label of each brand. Explain to him how to buy a good product at a low price.

All of the above

4. As a parent, you believe that

It is not an essential aspect of teaching children about value of money.

It is also an essential aspect of teaching our children the value of money to live a secure and comfortable life.

At such young age, children should be taught only about studying hard.

None

5. As a parent

You have planned your finances well to meet all your needs with the help of an investment expert.

You study about various investments options like equity, debt etc.

You do not put all your savings only in Bank deposit but try to diversify in various financial products.

All the above.

6. To make your children responsible,

Give them books to learn the importance of earning

Whenever there is a chance, take the kids to your workplace and tell them that you work there to earn money.

You should fix pocket money

All the above

7. When the child grows up and can have a bank account, you

Explain to the child about bank and its working.

Take your child to the bank to open a bank account.

Explain him/her how the money grows in the bank.

All the above

8. Parents can teach a sense of saving and spending to small kids by,

Showing them the documents of family investments.

Taking to the bank and making them understand the procedure.

Get a piggy bank and encourage them to collect the money received from their parents and the elderly.

None

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