Is your kid money smart?

Even though it is not part of the school curriculum, you must teach your kid to manage finances. Take this test to check your child's financial IQ.

     Print Edition: April 16, 2009

The correct attitude towards money during childhood will lay the foundation for wise financial decisions later on in life. So even though it is not part of the school curriculum, you must teach your kid to manage finances. Take this test to check your child's financial IQ.

5-7 years

1. You give your child Rs 50 to buy chocolates worth Rs 30. What does he do?

A) Calculates the change correctly
B) Accepts whatever change is given to him
C) Makes the wrong calculation

2. Your child receives Rs 100 as a gift from his grandmother. What does he do?

A) Gives it to you
B) Spends it on a toy he always wanted
C) Keeps the money in his drawer and forgets about it

3. A friend asks your child how much you earn. How does he reply?

A) Gives a figure that is approximately right
B) Says he doesn't know
C) Says that you are super-rich

4. You give Rs 50 to your child and he loses it. How does he react?

A) Informs you about it and is remorseful
B) Informs you but doesn't really care
C) Doesn't realise that he has lost it

8-12 years

1. You start giving your child a monthly allowance of Rs 200. How does he use it?

A) Spends it all in the first week
B) Puts it away safely
C) Paces out his expenses to last the month

2. You ask your child to make a purchase from a department store. What does he do?

A) Comes back without the bill
B) Checks the total amount and brings back the bill
C) Only calculates the change

3. You ask your kid to save half the cost for a video game he wants. What does he do?

A) Starts saving, becomes confused and loses interest
B) Pressurises you to buy it for him
C) Accumulates the money in two-three months

4. Ask your child to select the card used for withdrawing cash. Which does he pick?

A) ATM card
B) Debit card
C) Credit card

Till 15 years

1. The ATM card is not working. What does your kid do to get money?

A) He writes a cheque to withdraw money
B) Comes to you for money
C) Borrows from a friend

2. An e-mail asks for the child's ATM card number and PIN. What does he do?

A) Gives the details
B) Doesn't know the details
C) Deletes the mail and informs you

3. A salary cut has put your budget under strain. How does he react?

A) Doesn't care and continues spending as usual
B) Makes a conscious effort to reduce expenses
C) Volunteers to reduce his monthly allowance

4. What does your kid consider the best way to send money to someone in another city?

A) Mailing it in an envelope
B) Sending a money order
C) Transferring through Net banking

Answers:

5-7 yrs: 1.(A), 2.(B), 3.(A), 4.(A)
8-12 yrs: 1.(C), 2.(B), 3.(C), 4.(A)
Till 15 yrs: 1.(A), 2.(C), 3.(C), 4.(C)

If you have marked wrong answers in the lower age group, don't panic. There is still time to teach your child about the correct approach towards money. Ring the alarm bell if your teenager is clueless about most financial facts.

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