Vroom-Vroom with Wisdom!
Last Sunday afternoon, while I was sipping my coffee and reviewing some market reports, my 9-year-old son came to me with an expression that only kids can have — equal parts of excitement, curiosity, and mischief.
“Papa, when are we buying a Ferrari?” he asked with wide eyes.
Now, any parent knows these moments. They're not just questions — they're teachable windows into a young, growing mind. So, I smiled and decided to make it count.
Here's the actual conversation I had with my son:
Sriansh: Papa, when are we buying a Ferrari?
Me (smiling): But we have a car, beta. Why do we need a Ferrari right now?
Sriansh: Because it’s fast… and looks super cool!
Me: Hmm… But is that something we need or just want?
Sriansh (pauses): Umm… maybe… want?
Me: Yes. A need is something we must have — like food, clothes, our house, school books.
Sriansh: And a Ferrari?
Me: A Ferrari is a want — fun to have, but not something we need to live or grow.
Sriansh: So we first spend on needs, and save for wants?
Me: Exactly! Smart people first spend on needs, then they invest smartly for future needs like your higher education... after that, if anything is left, we can think about wants.
Sriansh: Okay Papa. Let's earn a lot, spend on our needs, save a lot, and then vroom-vroom!
Me (laughing): That’s the spirit! Vroom-vroom, but with wisdom.
In that short exchange, we stumbled onto a powerful principle of financial literacy — one that even adults struggle with.
It’s easy to fall into the trap of lifestyle inflation.
As income rises, so do our wants — not necessarily our needs. From upgrading gadgets to splurging on status symbols, it’s the Ferrari mindset that often disrupts long-term financial health.
But if children — from an early age — can learn to differentiate between a need and a want, and understand the virtue of delayed gratification, then we’re not just raising spenders; we’re raising investors with intent.
In our home, we’ve introduced a simple point-based reward system.
Every rupee my son saves instead of spending gets converted into an investment — a small SIP in his name.
He gets to track it, ask questions, and even request withdrawals — but there’s a catch: a 30-day notice period before the money is released, with a 100% penalty for impulsive withdrawals.
It sounds tough, but it works wonders. It instills patience, discipline, and foresight — habits most adults wish they had picked up early.
If you’re a parent, especially one who understands finance, wealth creation, or entrepreneurship — you hold a rare and powerful opportunity.
Not just to fund your child’s dreams, but to help them earn it with clarity.
Here’s how you can start:
Use real-world examples: Turn daily questions (like Ferraris) into learning moments.
Set up a kid-friendly savings/investment tracker.
Reward saving behaviour — not just chores or academic performance.
Talk openly about money — not as a taboo, but as a tool.
Introduce trade-offs — if they want something, what must they give up or delay?
We all want our kids to fly high, dream big, and achieve more than we did. But just like a Ferrari, speed without control is dangerous. That’s why the goal isn’t to deny them luxury — it’s to equip them with the mindset to afford it responsibly.
So, the next time your child asks for something shiny and fast, smile — and take them for a thoughtful ride in the world of money.
Who knows? One day, they might drive that Ferrari — not because they wanted it now, but because they planned for it wisely.
To all smart parents out there: Ferrari dreams are beautiful. Just make sure you teach your child the difference between needs and wants — and give them the financial steering wheel, slowly but surely.
Warm Regards,
Mohit Beriwala