Financial literacy is a crucial skill that children and teens should develop early.

Financial literacy is one of the most crucial aspects of any individuals' life. Learning and developing financial management abilities is a critical skill that will enable the young generation to efficiently grow their wealth and economic assets in the future. This money management practice lays a solid foundation in fields like saving, spending, and investment in children.

Parents can start with small steps to teach their children how to save and spend efficiently. They can start giving pocket money at a young age so that they can keep in check their expenses and buying habits. Parents can help kids understand the cost of things so that they understand the value of money at an early stage. Different games like Monopoly and other business-based games can also make them proactive in finance management. Lastly, and most importantly, they can teach their kids to handle a financial crisis by explaining to them to cut down small expenditures and save money for the important ones.

Currently, technology has made investment simpler with just a click. Introducing children to digital finance and explaining to them the basics of digital currencies would help them make more informed decisions. Also, the Indian government has organized several strategies and programs for financial literacy.

• Project Financial Literacy: The RBI has undertaken this project to impart knowledge about the central bank and banking concepts to target various groups, including school and college-going children.
• NSFE & NCFE: This venture was undertaken by the FSDC to spread awareness about certain arising questions like how to invest, why to invest, and how to borrow from banks. The council has proposed to make financial literacy an official responsibility of the industry stakeholders, such as RBI, SEBI, and other financial institutions.
• Material on Insurance for Children: This document is available online in the form of comics and videos. It is formulated by the IRDA (Insurance Regulatory and Development Authority) to explain to children about the basics of insurance, its advantages, and prospects.

Financial awareness in India is crucial as it will allow its young residents to increase their income right from the beginning of their careers and maybe even before that. If children are allowed to make their financial decisions at an early stage, in the future they will be economically alert and more independent.