Making Finance Child's Play! This 7-Year-Old Talking About Investing In Mutual Funds Is Gaining Attention For All Right Reasons

Despite being one of the fundamental concepts, financial understanding is not something that comes along easy to everyone.

This is reflected in one of the longest trends seen among netizens, where they question the education system for teaching trigonometry over taxation. Investment is yet another such subject that falls under finance and helps many move forward to a stage of financial security as well as independence.

While many continue to cluelessly explore ideas of investment and finances, a video of a small girl simplifying mutual funds is going viral for all the right reasons. Breaking down the concept from the point of view of a seven-year-old, she conveys an important message on money management.

No Longer A Subject Equivalent To Rocket Science

Mutual funds, in technical terms, is an investment fund that pools money from investors to purchase securities and give it back to the investor after a period of time in the form of potentially profitable returns. Breaking this down for easier understanding was the video of a seven-year-old posted on Twitter.

What my daughter intends to do with her Diwali Shagun envelops😊 pic.twitter.com/Edwg81ZUPH

— Swati Dugar (@SwatiDugar_) October 25, 2022

The video posted by a user named Swati Dugar shows the girl talking about the money she had received as her Diwali Shagun. When asked what she intended to do with the gift money, she promptly responded that she would be investing it in mutual funds.

She then goes on to explain that "mutual funds people know what companies are good and what companies are bad. And if they (mutual funds) give that money to the good companies, the company might make some profit, and my money will also start to grow."

On being asked why she wouldn't directly buy stocks from the said company, she clarifies that she may not have sufficient knowledge about the company, and mutual funds investments would help her navigate through the options that they think could be good. Her mother then asks her, "How long do you plan to invest the money?" to which she ponders for a while before choosing a long-term plan of ten years.

Reactions Received From Netizens

The video of the small girl simplifying a subject that was often placed close to understanding rocket science garnered the attention of many online users. Among those include the CEO of the digital payment platform, Paytm. Reposting the video, CEO Vijay Shekhar commented, "Mutual Fund sahi hain."

Mutual Fund Sahi Hai ✅ https://t.co/m5Oc5aI2B3

— Vijay Shekhar Sharma (@vijayshekhar) October 26, 2022

The original video received over 21,000 views and more than 300 likes. Many users shared stories of their first investment, and one user by the name Priyanka commented, "So impressive! Made me recall my first investment, which I did when I was in class 1." A few parents also pitched in about how they had introduced financial concepts to their children and talked about how they have been investing together for several years.

My daughter has been investing for last 4 years. On her own in MF and Sukanya Samridhi. In fact she is saving for camera next year for last few months. She has been thought about investing from age 4.

— spartanvikas (@spartanvikas) October 26, 2022

Praising the girl's understanding at such a young age, a user by the name Aryan Mulchandani replied to her mother, saying, "An entrepreneur who knows how to invest. You've a prodigy for a daughter!". Many others were also of the view that involving children in financial dialogues is just as much needed as making them choose a career path.

Amazing, this was required in India much earlier because we were only concerned with selecting a career path between science and commerce while ignoring Investment Management and Financial Planning.

— Akhil Rathi (@Akhil_Rathi) October 26, 2022

Another user named Sandhya Upadhyaya reflected upon yet another crucial point of securing financial independence for the girl child. She commented, "We were housewives and never thought of our future...All girls should learn from the little girl how to make or break your future."

We were house wives and never thought of our future, no idea about all these as girls or as house wives and reaping the result now.All girls should learn from the little girl how to make or break your future.

— sandhya upadhyaya (@sandhyaupadhya1) October 26, 2022

By helping children develop a healthy sense of finances, one enables them to secure a future where they would not have to carry any form of financial burden while trying to pursue their passion.

Also Read: Are Women Really Independent To Make Their Financial Decisions?