Recently got a copy of Amar Pandit’s book – Bill and Penny’s Money Adventures. There was no point in trying to do a book review. So I asked my daughter to read it and WRITE what she understood.

I was quite impressed – first of all to get a 9 year old to read a book on Money is not really easy, but she finished in a day and here is what she thinks about Saving (not a word changed from what she wrote, Her name is Mridula and studies in Apeejay School, Nerul, class 4:

Saving:

Saving money is very important. We should save money because if one day suddenly we need money we will have it with us. If we just keep on spending all the money that we get and one day we need money we will not know what to do.

I am also saving all my pocket money because I might need it in future. I have kept it in a bank account and I get interest on that every year.

Tax:

As we all know that Government pays money for various things we should never spoil those things as Government takes money from our parents in the form of tax. All those people who get regular salary have to pay tax. When we buy a movie ticket half of the money that we pay goes to the government. This is called Entertainment tax.

Investing:

Investing makes our money grow. Just as a plant grows from a seed to a plant. When we keep our money in a savings bank we get interest but if we will invest our  money in fixed deposits, shares, mutual funds, public provident funds, etc. our money will grow from a small amount to a big amount faster. Real money takes more time to grow whereas a plant grows within weeks.

Insurance:

Insurance protects you from spending a big amount on medical treatment, repairs, etc. Today if Iam spending a small amount on a helmet, kneepad, armpads, etc. this will help me in being safe while skating. I will not have to spend a big amount on medical treatment. And if I fall ill the insurance company will pay the hospital bill. This way me and my family are spending lesser money from our pockets.