Schooling, tuitions, music, dance, karate class�the entire lot.

Most kids today have every single activity of their day detailed down for them.

The maddening competitive rush, the expectations and a million career opportunities have ensured that parents these days leave nothing to chance. So in this 'out for the money' world, isn't it surprising that most kids aren't informed even a tiny bit about money?

It is unlikely that a kid will learn to manage her/ his money until s/ he formally takes up a career in finance. Here is what you can do in your own little way to ensure that your kid isn't completely at sea when it comes to managing her/ his money.

1. It's never too early to start

Kids these days are more informed than you think. Teach them that money saved now, grows and is more useful later. Explain the benefits of saving money over time, and how it can provide them with the power of buying something in the future that may be well beyond their means today.

Tell them how wants change over time, growing faster than their means. Introduce them to the concept of monetary 'limitations' and how saving is the one best way to avoid them.

Let your child take the lead by her/ his natural inquisitiveness. Be subtle and not preachy about giving such advice. Make it out to be a trick that you are letting them in on, so that they take it more seriously and enjoy while at it.

2. Who makes money?

In every child's head, parents are a sort of discretionary mint that decides when to grant some money and when not to.

They seldom realise that even parents have a limit to the amount of money they can spend or give them. Children, hence, start treating money as a freely available commodity. Try making them understand that you only get as much money as the amount of work you put in.

Explain the concept of 'salary' to them by giving them a nominal monthly allowance. Keep a tab on their weekly expenses, and let them learn their own lessons. Do not chide them in case they run out of their money early in the month.

3. Money management vs inculcating values

Some people are of the opinion that giving children money at the start of the month is a good idea, as it teaches them to be responsible with it, while also learning to plan out the month with limited finances.

Others prefer making their children feel like they have earned the money, be it through household chores, washing the car etc. This might be a better way to instill values, but I think a few rupees per chore will not teach them much about financial planning.

Instead, they might treat it as a reward for work well done and spend it all at one go. Which way to take your child? The choice, of course, is yours.

4. Show them how saving can be fun

Buy a fancy piggy bank, or even better�build one!

Involve your child in her/ his savings, by making her/ him a nifty piggy bank out of a seashell, a shoebox, an old jute bag or whatever your child takes a fancy to.

Explain to them how a real bank functions, and paint a rosy but realistic picture of the benefits of saving. Tell them how they will not have to pine for their favourite toy anymore, once they start saving money. From your side, also replicate what a bank does, by offering them interest and incentives for good saving habits.

Basically make them truly appreciate the merits of saving and financial planning.

5. Banking is an experience; let them feel it

Take your child to the bank. It might not be a boring visit for them once they are introduced to a few basic banking chores.

Show them what a passbook is; explain to them the function of a cashier, a teller, a safe-deposit vault etc. As soon as possible, get an account opened in their name, where they can personally experience these features.

Over time, if they want to buy something they cannot afford, remind them of the merits of saving over borrowing and spending more than they have. If you end up lending them money, make sure they pay you an interest amount, however nominal it is. This will make them learn by experience the basic features of money and banking.

6. Inculcate good shopping habits

Kids are very observant; they catch on to the smallest of habits and attitudes.

If you are an impulse shopper, make sure you do not overindulge yourself in front of your children. Although you know your spending limits, and your impulse purchase might be justified, kids do not realise this.

Over time, they tend to pick up just the superficiality of the habits, without understanding their repercussions.

As often as possible, make large or expensive purchases seem deliberate and planned. This gives the children the impression that you treat money with respect, and are not too generous with it while shopping. Rationalise purchases in their presence so that they understand the usefulness of it.

Teaching your children these bits about money and banking might seem quite difficult at first. But do not shrug away this issue and deprive them of this very practical lesson in life.

Your kid looks up to you as parents, so there is not much you can do wrong in their eyes. So take up the challenge, and be the one to open the doors of your child's mind to money management and the importance of saving and financial planning.