By Mzukona Mantshontsho
It is important for parents to teach their children about saving and to encourage a savings culture as early as possible. Instilling saving habits from an early age will serve children well for the future. Although tricky – the idea of ‘putting money away to pay for something or even save for a goal whether big or small’ can be tough for an eight-year-old to understand – with a little help, and some fun games and tools, they can be well on their way to saving. Try these simple tips:
- Drawing a picture to explain the concept
To create a culture of saving, start by finding something your child wants or needs. Explain to him or her that this item isn’t for free and that they need to work to earn money to buy the things that they want. Together, find out how much the item costs and how long your child will need to save his or her pocket money to get it. A savings chart can help your little ones keep track. Every time they get their pocket money, or chore money, they can tick a box on the chart. This shows them how much money they’ve saved and how much they’ll still need to, to get the thing they want.
- Upgrade the piggy bank
Piggy Banks have been a fun way for kids to save, because they can’t open it for a certain period of time – building that anticipation pushes them to keep saving until it is full and heavy. If you want to upgrade to a safer option, consider contacting your bank for some options that kids can use to save their money – Standard Bank offers (sum)1 bank account is ideal for kids 16 years and younger. This account teaches kids to become financially savvy by giving them an option to send mom or dad requests for data, airtime or spending money; they can learn how to earn money for doing their chores at home with help from the app; they can start saving for the stuff they want with free transfers to a savings account, and they can get 250MB or R25 airtime for free every month.
- Make saving fun
Rewarding your children when they reach a saving milestone can encourage them to continue earning and saving their money. Don’t forget to do your bit, saving with your children can help show them just how fun and cool saving really is, as you reach new savings goals together, and reap the rewards.
