Last month, in November, we, in India, celebrated Children’s Day. While largely we use to celebrate the youngsters in our midst, it’s also an occasion we can use to ensure that we are passing on important learnings to them with a view to making them successful adults of tomorrow.
One of the things that many of us lament is the very little emphasis we give to teach our children the basics of managing money as they grow up. SIP (Systematic Investment Plan) is a great tool you have which you can use to teach your child the intricacies of managing money, and more.
Today, when you start a SIP for your child, you’re making her/him a select group of investors who are placing their trust in this credible instrument of investment. The total SIP accounts in India currently stand at 5.93 crore. Just last month, October 2022, the total amount collected through SIP was Rs 13,041 crore.
Security Investment ran a campaign last month to encourage parents and elders to Start A SIP and gift it to the youngsters in their family to get them interested in the intricacies of managing money, and also watching it grow! In addition to great returns when they grow up, managing a SIP is going to give them a number of crucial life lessons and make them grow into sensitive adults, besides being financially stable!
Nurture
When you introduce your children to managing a SIP, the child learns the importance of nurturing things over a period of time. They learn to carefully invest in things that are of value to them and experience the joy of watching them grow.
Be Patient
When you introduce a child to SIPs, you are teaching them the virtue of being patient in reaping the rewards of their investments, be it in money matters or others. It's well-known, especially in the world of investments, that the power of compounding is the most effective way to go. And, patience is the most effective way to get there.
Be Disciplined
When you get your child to keep track of a SIP, you’re teaching her/him the very important value of being disciplined. And, that comes in handy in whatever phase of life you look at. For a child to manage the discipline of making regular payouts month after month is a great learning. And, gets her/him ready for a great future at the workplace or managing finances at home.
Plan
When your gift your child a SIP, he gets to plan her/his spendings and also savings accordingly. So, in addition to teaching him to plan long term you are engaging her/his faculties towards getting a long-term view and prioritising the important tasks from the not so important, thereby readying her/him for larger responsibilities in life.
Be Money-wise
This is the ultimate benefit of gifting a SIP to the youngsters in your family. While a number of us always wish we were more clued in to money matters as youngsters, we now have a chance to make our next generation more aware and more smart in terms of managing money from a young age.
Remember financial management is most effective when taught at a young age. All you need to do is make it a healthy mix of fun and responsibility. So, this November, gift the children in your family a SIP and watch them begin their journey towards becoming successful and financially secure adults.