What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it and teach him several key ideas of decision-making and money management is the narrative.
Most investor problems can be traced to a lack of informed decision-making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain?
Well-begun is half-done. If we can teach our kids how to make the right money decisions, they can avoid mistakes, spend prudently and start building wealth as soon as they start earning.
Who is the book for? Children above the age of 10. Some 8+ kids may also be able to appreciate it. The text is straightforward so that a child can readily understand the importance of self-analysis (realise what we want and not get affected by peer pressure) and independent decision-making.
What is covered in the book? Aspects connected to decision-making such as (1) Affordability: living within our means; (2) Needs vs wants; (3) Delay gratification; (4) Planning a purchase; (5) Appreciating our requirements; (6) Ignoring peer pressure; (7) Benefits of product research; (8) Basic of borrowing (debt); (9) Budgeting.