Money Matters: For your kids' sake, let them take this test

Tinker, tailor, soldier, sailor: Who knows what your child will be one day. So it matters how we manage our money as much as how we earn it. When it comes to kids today,just imparting regular education is not enough. They have to be made financially literate as well. Keeping this in mind, the National Centre for Financial Education (NCFE) has announced India’s first national-level test to measure the level of financial literacy among school students. The test is open to all students of classes VIII to X.

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What would be covered: The test would have questions on important personal finance topics, like what money is,how to manage personal budget, what are the investment avenues available and other issues related to banking, savings and insurance. It will also cover principles of financial planning and retirement planning, a topic that needs humongous attention. The test seeks to impart knowledge about various money-related topics and skills which would help children take better financial decisions in future.

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Other details: The test will be conducted on 12 January, 2014, and has 75 questions which children need to answer within 60 minutes. It is available in English and Hindi. There is no fee. Registration has to be done through the school. The last day for registration is 29 November 2013. Of course, the kids doing exceptionally well stand a chance to win a medal, laptop, and certificate of honour. Read here to know more.

Many parents today take care that their children have a minimum level of financial literacy. There are a few who give them even access to bank accounts. A survey by ING Vysya Bank, released on 14 November 2013, found that as much as 52 percent of respondents had opened savings bank account for their children in 2013 compared with 40 percent a year earlier.

In fact, over 50 percent of respondents who participated in an annual ING survey, said they don’t believe in giving their children pocket money, but prefer to dole out cash if they get good marks in school exams. Also mothers edged out fathers as influencers when it came to money management by children; 72.7 percent of respondents thought kids asked mothers maximum questions about money.

All in all, an excellent move to inculcate financial discipline among children. Most of us know how to earn money, but when it comes to managing it, we are at a loss. This will help children to help children to take informed decision when the time comes.