E-Book

utkarshkumar.com

The ‘Money Matter’

FAQ’s
For Parents

Straightforward & practical answers to the most

asked questions from my sessions
ACKNOWLEDGEMENT
My sincere gratitude to-

People who trusted me enough to provide them with financial advice and tips.

People who attended my sessions and provided words of encouragement and feedback.

Friends and family, who taught me to take 'one step at a time, all the time'.

NOTE
You are receiving this e-book for FREE, because you are a Arth Community member.

Copyright © 2023 by Utkarsh Kumar.

All rights reserved. No part of this e-book may be reproduced, distributed, or transmitted in
any form or by any means, including photocopying, recording, or other electronic or
mechanical methods, without the prior written permission of the author.

For permission requests, please contact the author at hi@utkarshkumar.com or

utkarsh@niivlearning.com.

DISCLAIMER
The information contained in this e-book is for general informational purposes only and does
not constitute personal financial, investment, or legal advice. This book does not provide any
personalized advice or recommendations based on your individual financial situation.

The reader is solely responsible for any financial decisions they make based on the
information in this e-book. The author and publisher will not be liable for any errors or
omissions, or for any damages arising from the use or reliance on this information.

-2-
About
UTKARSH KUMAR
I simplify personal finance!
Founder - Niiv Learning Labs LLP,
Certified Financial Risk Manager,
Money Educator,
Retirement Advisor.

Greetings!

Having conducted over 150 sessions on personal finance for thousands of

individuals, I've gained invaluable insights and experiences.

To share some of this knowledge with you, I've compiled this e-book featuring
some of the most frequently asked questions from my consultations and
sessions, and my responses.

I hope this resource will provide you with the clarity and understanding you
need to take control of your finances.

If you have any further questions or concerns, please don't hesitate to reach out
- I'm always here to help.

Thank you for your interest in building a financially secure future for yourself
and your loved ones.

You can reach out to me at hi@utkarshkumar.com or connect on my social

media handles.

Yours,

Utkarsh Kumar

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 WHAT ARE THE MOST IMPORTANT
LIFE SKILLS FOR MY KID TO LEARN?
"There is so much for my kid to learn!"

A statement that often comes out during my interactions with parents is

about the explosion of skills/traits/habits their child needs to learn.

They are often confused and at a loss because everything seems

important and relevant.

My suggestion is to focus on 4 most important things-

1. Build habits of 'Health'

It can range from involving your child in outdoor sports to building good
eating habits. I even see a lot of small kids in yoga sessions nowadays.

And yes, health includes 'mental health' too.

2. Build habits of 'Wealth'

Make your child practice saving, investing and delayed gratification

through daily activities.

Also, make them realise the value of hard work and how it is the way to
get everything you want in life.

3. Develop resilience

Help your child get up and start again.

Be it lower grades at school or losing in a competition, developing the

'never-say-die' attitude is a game-changer.

4. Cultivate independence

Be it time management, taking tough decisions, or finding solutions to

problems. Put them in the hot seat, and let them figure it out. Help them
if they need it, but do not hand them everything on a platter.
Contd.

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 Help them if they need it, but do not hand them everything on a platter.

Although there are a lot of other skills (like digital literacy etc.) that a child
should know, focusing on the above in the foundational years can be a
game-changer for kids.

These habits can be easily integrated into daily lives and can make it
easier for parents to handle their kids amid the explosion of 'so much to
learn'.

Parenting should be enjoyable and not a set of tasks!

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 MY CHILD HAS JUST STARTED
SCHOOL. HOW CAN I TEACH HIM
TO BE FINANCIALLY RESPONSIBLE?
One of the best-kept secrets in the world of personal finance is that there
are really only a few concepts that matter. And you as parents are in the
best position to develop your child into a financially responsible one.

Research by Cambridge University, England shows that by the age

of seven, many of the habits that will help kids manage their
money are already set.

Here are a few actionable ways to develop smarter saving, spending and
investing habits.

Make your child a better saver

If your child is getting tempted by the bag of chips at the counter,
an effective strategy is to focus on long-term negative outcome.

"If you spend money on a bag of chips today, it will take you longer
to get the Legos that you really want".

Once you see your child resist an impulse purchase, acknowledge

and appreciate the same.

--

Be consistent with the following message - "The minute we get any

cash as gift, it goes right into the piggy bank". Make this a routine.

You can also decide on specific weekdays for ice-cream, candy etc,
so that your child has the habit of not overspending on any one
thing.

Contd.

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 Make your child a smart spender

Many parents I know refuse to take their kids to the store for fear
they'll scream and cry unless they get what they want.

In this situation, it's often the parent who ends up being more
traumatized than the child. Even worse is the sense of guilt parents
feel after they say NO.

If you face such a situation : "Stick to your guns, the moment will
pass".

Help your child set limits to the amount of candies, chips or toys they
can avail each week. Before going to the store, remind them of the
limit that they have exhausted and how they should spread out their
indulgences over the week/month.

Sow the seeds of investing in your child

Help your kid plant a garden or put some seeds in a flowerpot.

Young children have a difficult time understanding the concept of

future, understanding investing can be tough for them.

One way to introduce the idea is to relate it to something that a kid

can see, like the process of a seed growing into a flower or
vegetable.

Talk about the time, effort, fertilizer and water you need to "invest"
so that you get beautiful flowers and vegetables.

This will develop patience and provide a sense of achievement to

your kid.

For more simple tips on helping your child understand money?

Check out my blog.
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 WHAT SHOULD WE KEEP IN MIND
WHEN DISCUSSING MONEY WITH
KIDS?
The fact that you are asking this question means that you realize that you
should talk about money with your kid. Always remember that money
conversations happen as we go on with your lives.

Based on my work with parents around money communication, I am

listing out some points you need to keep in mind while talking to kids.
Share the money talk responsibility
Research shows that most of the time kids turn to moms for their
financial questions.

When this happens, avoid saying "Ask your father!".

Why?

Because when you keep deflecting the money questions to your

partner, it sends the message that money is a man's thing.

Answer your kid's queries, and if you do not know the answer, get
back to your kid after finding the answer.

Also avoid phrases like - "Mom is better with money", "Dad knows
more about finance".

Have your money fights away from kids

Research found that kids whose parents regularly fought about
money were three times more likely to have unmanageable debt
when they grew up.

Whenever possible, shield your children from your big money

disagreements.

Always speak in "one voice" when talking money with your child.
Contd.

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 Gifts have value (and not a price)
The joy of giving and receiving will be lost on your kid if you mention
the price each time you give or receive a present - whether it is for
your kids or someone else.

Make your child realize that the value of gift is not in its price,
but the feelings and efforts taken by the other person.

There is a lesson here for you too. Practice this yourself before you
preach it to your kid.

Which parent makes more

If you and your partner both work full-time, avoid discussing who
earns more.

Putting numbers to your earning can send the message, especially

to young kids that one parent's contribution is more than the other.

Always show them that you are a team, you work together and it
does not matter who earns what.

Want more such tips on money communication with children?

Check out my blog.
www.utkarshkumar.com -9-
 HOW DO I SAVE AND INVEST FOR
MY CHILD’S EDUCATION?

I will tell you a simple strategy and calculation as an example. You can
easily use a compounding calculator online to adjust the values and come
at a personalized figure.

To save and invest for your child’s education without putting much
strain on your finances - START AS EARLY AS POSSIBLE!

Let us take the following example-

Goal -
You are planning to save for your child's college degree 15 years from
now. The degree currently costs ₹ 10 Lakhs.

The inflation in education is currently @ 10% yearly, so you will need

almost ₹ 41.77 Lakhs in 2038.

₹ 41.77 Lakhs
(2038)

₹ 10 Lakhs
(2023) Education Inflation - 10% yearly

The important question is - How can you accumulate this much money
in 15 years? Read on to find out -

Contd.

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 I will give you 3 options to achieve a corpus of ₹ 41.77 Lakhs in 2038.

2023 2038

₹ 8,279 per month*

Option 1

₹ 12,783 per month*

Option 2 ₹ 41.77 Lakhs

₹ 25,861 per month*

Option 3

2030

Which option would you prefer?

I always recommend you invest a smaller amount early and let compounding
work its magic while you sleep (Option 2).

*Assuming Long term returns at 12% per annum. Per month figures are approximate

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 HOW DO I KNOW IF I AM RAISING
A FINANCIALLY RESPONSIBLE
CHILD?
To know if you are raising a child who will be financially aware and
responsible, ask yourself the following questions -

Does your child have habits and mindset to stay rooted and humble
when they grow up and accumulate money?

Does your child save a part of his/her pocket money?

Does your child understand that wealth does not just mean money
but includes health and happiness too?

Does your child realise that money does not get you everything under
the sun?

Does your child understand 'the joy of giving'?

Does your child recognize your hard work and value your efforts
towards getting food on his/her plate?

Do you as a parent, are a good financial example in front of your

children?

There is a thin line between providing for your children and spoiling
them. Do you know where to draw the line?

How much question can you answer a ‘YES’ to?

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 Share with friends and family!

If you want to share how this book helped you, or have questions you are
seeking answers to,

Drop me a mail at hi@utkarshkumar.com or utkarsh@niivlearning.com.

(I personally read everything)

To know more about me:

Visit utkarshkumar.com

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Visit niivlearning.com

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