Young Money Masters: How Kids Are Changing Family Finances
This Children's Day brings a surprising financial revolution in Indian households. Children exposed to financial literacy classes are not just learning about money—they're transforming how their entire families approach saving, spending, and investing.
Khyati Dharamshi's research reveals that kids are shifting from being wishful spenders to thoughtful savers and even smart investors. The most remarkable aspect? Parents are learning alongside their children, keeping up with their growing financial curiosity.
The traditional approach to money education often comes too late in life. Many adults realize only after years of working that acquiring money is merely a means to an end, not the end goal itself. Yet with children learning early about money as a tool for growth, value, and responsibility, these fundamental lessons are moving to the forefront of family discussions.
Smart Beta Funds Lose Their Shine
Meanwhile, in the investment world, Smart Beta funds are experiencing a significant downturn in popularity. According to a DSP Mutual Fund analysis, the percentage of total equity flows from smart beta funds has dropped to its lowest level in two years.
These hybrid funds aimed to combine the efficiency of passive investing with the strategic approach of active management. Unlike regular index funds that simply mirror market capitalization, Smart Beta funds build their investment strategy around specific factors like value, momentum, alpha, quality, or low volatility.
However, their recent subdued performance has led to muted investor enthusiasm. Financial experts caution that while these funds have their place, they shouldn't replace core investments that include a healthy mix of index funds and actively-managed funds.
Digital Transformation in Mutual Fund Management
In positive developments for investors, mutual fund management has become significantly more accessible. A new fully online facility launched by CAMS and KFin Technologies—the two registrar and transfer agents handling all mutual fund back-end operations—now allows investors to transfer mutual fund units and modify ownership details seamlessly.
This breakthrough, documented by Maulik M., represents a major step forward for investors who don't hold their mutual funds in a demat account. Previously, such transactions weren't possible through digital channels.
Additionally, investors can now declutter their financial lives by consolidating investments under a single document called the Consolidated Account Statement. The CAS provides a comprehensive snapshot of holdings across mutual funds, bonds, and shares, displaying portfolio details and current values in one convenient location.
Essential Financial Guidance for Life Transitions
Mint Money also addressed crucial financial planning for women navigating divorce. Anagh Pal's important story outlines how women need to reclaim their financial independence after marriage dissolution. The article serves as an essential toolkit covering everything from organizing paperwork and updating ownership details to creating an independent financial strategy.
From the expat series, Shipra Singh profiles an NRI couple who established permanent roots in Dubai. What began as a temporary MBA journey for Sushmeet Singh in 2008 turned into long-term settlement, attracted by the country's income tax-free environment and minimal salary deductions. The financial advantages proved compelling enough for Singh to pursue a golden visa and purchase property.
The financial education movement, spearheaded by the next generation, demonstrates that when children learn money management early, entire families benefit. As Deepti Bhaskaran, Mint Money editor with nearly two decades of personal finance journalism experience, emphasizes through her work, financial literacy, consumer protection, and practical money management remain crucial for all age groups.
