Does Giving Allowance to Kids helps them in understanding Finance better? Here is what Kamala did.

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Kamala was a mother of three children, Suresh, Sowmya and Srinivas. She knew that giving her children an allowance would be a great way to teach them about financial responsibility. Kamala believed that by giving them a set amount of money, they would learn how to budget, save and make smart financial decisions.

When Suresh, Sowmya and Srinivas were old enough, Kamala sat them down and explained the concept of an allowance. She told them that they would each be receiving a certain amount of money every week and that it was up to them to decide how to spend and save it.

At first, Suresh, Sowmya and Srinivas were excited about the idea of having their own money to spend. But Kamala made sure to explain to them that it was not just about spending but also about saving and budgeting. She showed them how to set financial goals and make a plan for achieving them.

The children were eager to learn, and Kamala was happy to guide them. She helped them set up piggy banks and taught them how to track their expenses. Over time, Suresh, Sowmya and Srinivas became more and more responsible with their money. They were saving more, spending less and setting realistic financial goals for themselves.

As the children grew older, Kamala noticed that they were becoming financially savvy. They were able to understand the value of money and were able to make smart financial decisions. Kamala was proud of her children and knew that the lessons they had learned from her would serve them well throughout their lives.

Years went by and Suresh, Sowmya and Srinivas became financially independent adults, they were able to manage their money well and were able to achieve their financial goals. Kamala’s decision to give them an allowance had paid off and she felt proud to have played a part in their success.