It is critical that children learn how to manage money from an early age and become aware of what the savings process entails. They’ll be able to effectively manage their financial situations as a result. Additionally, their actions have an inherent impact on the health and future of our country’s economy.
DebtSafe urges South Africans to assist in educating kids about saving and handling money wisely during July (National Savings Month).
Here are some useful hints to help parents and guardians with their necessary (and inevitable) task:
initiate open dialogue
Talking to kids about money and outlining its responsibilities is the best way to encourage them to save and understand its importance. Regular conversations between parents, grandparents, or other guardians and children should, of course, include an open line of communication. Sit around the dining room table and discuss specific instances, such as the monthly shopping list, upcoming holidays, and the associated costs. Then, let them reflect on what was said and shared during the money conversation. In relation to the necessity of performing household chores, parents can also emphasize the value of money by assigning each child a specific task in exchange for a set amount of pocket money each week or month. Stress the necessity of it and what the “win” or saving that the task and concept represent.
Make the idea concrete.
Kids need to be shown a clear understanding of money and how to become savvy savers. Young children need to physically touch and see the money they save. As a result, it is simpler to ‘feel’ its loss after it has vanished. However, using a bank card to make a purchase is not the best way to begin teaching kids how to save money and manage their finances. For younger children, piggy banks or savings jars will then be useful. Allow them to create jars for each saving objective, for holidays and special occasions like Christmas or birthdays. Additionally, when the kids get older, it’s a good idea to open a savings account. It is encouraging for your children to see that they are improving their saving habits and moving closer to becoming wise financial managers.
Set goals and create a “savings chart”
Children can be encouraged and helped in creating their money savings chart by their parents and guardians. A timeline showing how many weeks or months it will take to save for a specific savings goal needs to be included in this chart. Use stickers or magnets to decorate it in a way that suits their tastes and preferences, and let them be in charge of maintaining its appearance and updating it. Additionally, give them a prize once they reach their (short-term) savings objective.
Parents and guardians should “live what they preach.”
What use is it for adults to advise children to be frugal with their spending and proactive savers if they never demonstrate this behavior or provide a good example of it? Parents and guardians can set an example for their children by setting up their own savings account and making regular deposits, or they can use examples to show them how to set goals and achieve them. Children can learn about money through each action when they go shopping. Show them how to stay within their budget during the holidays, for instance, by pointing out what prices to watch out for and outlining the necessity of doing so.
Some people believe that it is never too late to start saving money or learning about what it entails, but I want to emphasize that starting sooner rather than later is better. From an early age, children can be “money educated” so that they can join the generation of savvy savers and have the chance to succeed financially. By imparting the necessary skills, parents, guardians, grandparents, aunts, uncles, and teachers can help children learn about money and the idea of saving. The children and their future decision-making are winners in this scenario, but South Africa’s economy and prosperity are also winners.
