Malavika Datar, 39, from South London, has introduced a structured financial education system for her seven-year-old daughter Purvi, using three glass jars labelled Spend, Save and Invest. Purvi receives £4 per week and decides how to allocate the money, with a 12 per cent yearly return offered on the investment portion.
Making money a normal topic at home
Malavika, who works in retail supply chain, introduced the idea on Purvi's 7th birthday, wanting financial matters to become a normal conversation topic at home. Growing up in an Indian household where money was rarely discussed around children, she chose a different approach. "In South Asian families, especially Indian families, we don't really talk about money with our kids. We wanted to start talking about money early and make it something we all felt free to discuss. Those are the values we wanted to bring into our family," she said.
How the system works
Previously, Purvi received £3 weekly with no structure. Now with £4, she cannot simply put £1 in each jar. "She actually thinks about what she wants to do with it. Interestingly, she spends £1 every week, saves £2 and invests £1," Malavika explained. To introduce long-term planning, Malavika provides interest on the investment jar. "For every pound she invests, we add 12p over the year. It's our way of showing her how investing works." The investment money can only be withdrawn twice a year—around her birthday in June and at Christmas.
Learning through experience
Purvi receives a spreadsheet tracking her balances. "When we go to the shops, she already knows exactly how much she has available to spend. She usually buys cute stationery because she loves stationery, something for her school bag or sometimes a chocolate," Malavika noted. Initially, Purvi favoured savings because she could withdraw anytime, but she is now understanding the benefits of investing. "When it got to June this year, I prepped her about if she wants to save for something that she can get in December then she really has to think about saving now. It is a good lesson for her," Malavika added.
Extra earnings and long-term goals
Purvi can earn additional money through household tasks. Her long-term goal is to buy a green Mini Cooper, though she has not yet researched the cost. The family also emphasises forward planning for Christmas gifts or outings. "If she wants something at Christmas, whether that's a set of books or a musical in London, we talk about saving for it months in advance rather than waiting until the last minute. It is a skill set that every child should learn," Malavika said.
