The time value of money

It is very important for one to understand the time value of

money. Especially we should let our next generation know

about it. As the sea wave keeps on coming without any

hesitation, life also flows on. It is important to make a

child understand about the journey of time along with the

changing value of life.

Do you see people using the old coins nowadays? I am sure you

do not. But you remember them as your grandmas must have kept

a few. This paisa is to be kept in with you only as they are

not in use. Similarly, today we can buy things with a 10-rupee

note, right? If I give you a ten-rupee note, you can

immediately go to the next shop and buy a chocolate for you.

Do you think even after a couple of years you will get the

same chocolate with 10 rupee? I do not think so and I am sure

you will agree with me, too.

Let us think about your latest toy, which your father bought

you last week. The latest remote controlled car cost him 200$.

My dear, you won't believe that I bought this car just a year

back for 120$ only!! Now, you might think that, as there are

the changes in the newest model, so the company has increased

their price. Yes, you are right to some extent but there are

other reasons too. You know that the price of everything is

increasing day by day. So to retreat the market value one has

to increase the price. The cost this company used to spend

after the toy has been changed. Now, as the new technology has

come within a year, they also had to improve the quality of

their toy. If they did not improve it, you would not ask me

for this toy, right? Tell me if it would not be as

sophisticated as it is and better than your previous ones,

then would you like to buy this? No dear, you would not,

nobody does. It is the market where everyone wants something

better and thus, the price is getting higher accordingly.

In your childhood when you used to collect donations for the

poor kids, how much people used to contribute? I think people

used to give you Rs. 5 minimum. Now, if you ask for that,

you will not get less than Rs. 10 from a person. It is

because earlier value of Rs. 5 is almost equal to value of Rs.

10 these days. You hardly get anything with Rs. 5 now, while

you will get a chocolate, a packet of potato chips or may be

a small toy at Rs. 10. Even you can get a pen at Rs. 10. So,

are you with me? Do you understand the difference now?

One more example will be suitable for you to understand the

matter. What is the price of the cricket bat you want to

buy for yourself? Aren't you saving your pocket money to buy

that this year? Now, now, you are caught! I knew it, do not

worry, everyone has his secret desires and I also had this

once. Let me share a story with you. When I was a kid like

you, one day I went to the market with my mother. There I

liked a talking doll and it was saying "mummy mummy" and

"pappa pappa". It was so adorable that I wanted to buy.

However, my mother did not have that money to buy me then

so she rather bought me something else. Well, I came back,

but the dream of having the doll with me stayed. That year

I did not buy anything in the Pujas and saved the money.

Then again in the festive season I did not buy a new dress

and saved the money instead. After that I told my mother to

buy me the doll with that saved money. Wow!! It was a lovely

experience when I got to get that doll from my saved money.

That was a superb feeling indeed. I have told you this small

story because I know some of you must be saving your pocket

money for your desired "thing". If it is a Cricket bat then

I am sure you need not save as much as I had to. Now if you

don't buy 1 dress in a Festival or just save 4/5 months'

pocket money you will be able to buy it. this is because

what I used to get as pocket money was lesser than you. The

reason is, the value has been changed. If I give you the

same amount, which I used to get as a kid, it won't be

suitable for you. Thus, the change takes place in our lives

too.

I think it is now clear to you how the value of money changes

with time. Now, one most important thing. You should realize

the value of money as well. Do not ever waste money

unnecessarily. It is a curse to you if you do so. The God will

be angry with you and you will be in trouble. Save money as

this plays a major role in your life. If you understand the

value of saving and not spending it without necessity then you

will surely have a bright future.

However, the value of money changes with time yet the concept

of money never changes. It never looses its importance in our

life. Ask your grandma about their life. You will be amazed

and astonished with the description. Sometime you might feel

that she is just telling stories!! Well, it is not so. After

a long when you will become a grandma and your kids will ask

you this, they will be equally shocked to know that you used

to get a chocolate at Rs. 10!

As a growing kid, you should realize this. It is very important

to understand the basics of life. One of the major things is this,

to understand the time value of money. I am sure you have

understood this well and do not have any doubts in mind. There

are certain things, which cannot be told, you have to realize

them from your heart. Other things I have tried to tell you so

far.

Author Bio:

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Author: P.C

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