In the wake of the recent demonetization drive by the government, Indian parents have reported guiltily breaking open their children’s piggy banks for small change to tide over the cash crunch. After the initial shock of seeing their piggy banks broken, children have been only too happy to oblige, given the promise that the money will be replaced with double the amount taken. As the country slowly comes to grips with the impact of this move, it’s a great time to impart some life lessons to impressionable young minds.
Why saving and conscious living is important
Most children treat their parents as an ATM and think that pocket-money is only for spending and not saving. While small children want every toy they see, teenager’s demands for gadgets and expensive products is never-ending. This is why teaching your child to save for a rainy day is essential. Help them make conscious choices about how they spend money; is what they want value for money or are there better alternatives available?
The importance of a cashless society
This is a good time to teach children the basics of banking, financial management and how daily living can be managed without cash. Talk to them about the pros and cons of using credit cards, the difference between debit and credit cards, net banking, digital wallets, how you can pay bills and order groceries online. Stress also on the precautions to be taken with each medium, like keeping passwords and pins safe and protection from digital fraud.
Familiarize them with the importance of paying taxes
Per a report released by the income tax department, only 1% of a total population of 123 crore Indians paid tax for the assessment year 2012-2013. Imagine if all Indians paid their taxes honestly and there was no corruption, how much money would be available to improve the roads, bridges, airports and other development work of the country?
Everyone is equal in the eyes of the law
The long queues for cash outside Banks and ATMs have blurred the class divide. Rich or poor, everyone is affected. The limits for exchange of old notes with new, deposits of old notes and withdrawal of money is the same for everyone. Anyone breaking this rule will be fined and will have to give the government tax on earnings they did not declare earlier.
Black money versus white money
When people pay tax to the government on money they earn, the money is called white money. When people do not tell the government about how much they are earning, don’t pay tax and hoard cash, it is called black money. Even fake notes made to look like real money are called black or counterfeit money. The government introduced de-monetization to remove black money. Though we can’t go to the border to protect our country like our soldiers, we can do our bit by fighting the war against black money.
At the end of the day, your actions and how you explain the ongoing situation will leave a lasting impact on the young minds who will decide the future of the country.