Raising kids has never been easy. In fact it gets tougher and tougher as time goes by. Our parents had it easier than us, our kids will do a rethink about having kids. They realize at an young age that raising kids seems to be a full time occupation, and many of them are not so sure about a 20/30 year commitment. In fact there are many young couples who are now into their 30s and still undecided about the kid(s).

Complicate this tough job with transfers, non-family postings, limited budgets, etc. and it make raising military kids even more difficult. And you need them to be world smart – not just cantonment smart.

First of all understand that Children learn about money from watching you. If you and your spouse fight about money, or keep talking about how you are always short of money, or how you have to support your parents….etc. the children will hear all this and keep processing the same in their head. Remember that there is research in the US saying that children form their money habits by the time they are 7 years of age. Money habits are ‘caught’ and rarely ‘taught’. So make sure that you and your spouse set a good financial behavior example for your children to follow.

Include them in MONEY AND LIFE conversations: Parents have to mTake a personal decision about how much of the curtain to pull back for their kids. There’s certainly wisdom in recognizing the value of shielding them from certain aspects of your financial reality, but assuming that kids will not find out the truth is living in a fool’s paradise. There’s also something to be said for allowing your kids to experience the process of working through financial decisions. It will teach them the financial decision making process. Teaching them the process is far more important than just taking financial decisions for them. Once you teach them the process – remember they will expect consistency of behavior!

More than just allowing them to be watching from the side-lines, you can allow your military kids to be active participants. Show them how to deposit money in the bank, withdraw using a cheque, withdraw using the ATM, make utility payments, pay the society charges, school fees, etc. Why should writing the school fees cheque not been outsourced to your children? Teach them buying sensibly, banking basics, etc. Take them through the pros and cons of whether or to buy a house, car, time-share, etc. Let them know the difference between your wants, need, and greed. Let them know that when you choose NOT to buy a teddy bear costing Rs. 13,000 it is because you have a different priority of money, not because you don’t have money.

Kids manage their time, they manage their relationships, they manage their education, stop thinking that they cannot manage money. I am convinced that a 13 year old can easily manage the administrative part of the house – paying salaries to the maid, driver, cook,  etc. Most of them can go and buy things – this tells them the price of bread is Rs. 30, and that of Cabbage is Rs. 40 a kg. Let them know the ways of the money world. Raising kids in the cantonment was never easy. Now with Google, Amazon, and Flipkart  the kids know what is available, and at what price. If you and your spouse salivate over things online, so will your kids.

When you want to buy something, announce it to the family and save money for that in a RD or a liquid fund. Teach your children the virtue of patience. If they see you wait for 6 months to buy a running shoe, it is possible that they too would. Pocket money? I never thought it was a good concept, however, you can tell your children that Rs. 5000 every 6 months is available for you – no questions asked on what to buy. This will allow them to think and do some window shopping. Put the purchase through some simple questions -will it bring happiness, what will you use it for, will you share it…..etc. and see how they react. Parenting is a responsibility, learn it well.

Let them touch and feel real money. Let them see money ‘go’ to get goods and services. They can manage money well. For all you know, your kids may surprise you in terms of their interest and commitment to making smart moves with their money.