Remember when visitors would come to your house and give you money when they were leaving, and your mum would tell you to give her the money so that she could keep it safe for you pending when you needed it? Did you ever see that money again? We thought they were keeping it for the rainy day but, alas, when the rainy day came, we were drenched in disappointment. That’s how our trust issues began (African mums come and catch your sub). Imagine if they had kept the money and given it to us when we needed it. That would have been a very valuable lesson on saving now to enjoy later, but we love them regardless. Instilling a savings culture in your kids is an important life skill that will serve them well in the future. Here are some tips to help you teach your children about saving money:
Lead by Example
Children learn by observing their parents. Demonstrating good saving habits and financial responsibility in your own life is one of the most effective ways to teach your kids.
Set Up Savings Accounts:
Help your children open their own savings accounts. This gives them a place to deposit money and watch it grow over time. UBA has the Teens and Kiddies accounts specially curated for this purpose. Imagine the joy your child would feel if you saved money for them from day one till they turn eighteen after which you give them access to it.
Now picture a situation where they get rewarded for saving. This is exactly what could happen when you maintain a minimum balance of N10k every month for 6 months in their Teens or Kiddies account from in the Super Savers Draw. You know how people complain about the beginning of the year being tough financially, winning a N200k scholarship in the draws can ease the financial burden of getting school supplies when they are back to school in the new year. The good news is these draws are open to new and existing customers. So, hurry now and open a Teens or Kiddies account for your child and save to qualify.
Give an Allowance
Consider giving your children an allowance, either tied to chores or as a way to teach them about money management. Encourage them to allocate a portion of their allowance to savings.
Teach Goal Setting
Help your kids set savings goals. Whether it’s a new toy, a bike, or something else they want, having a specific goal can motivate them to save. If they get distracted while trying to achieve their goals, encourage them to learn from their mistakes and start over.
Encourage Delayed Gratification:
Teach your kids the value of waiting for something they want. Delayed gratification is an important aspect of saving.
Discuss Wants vs. Needs
Teach your child the difference between wants (items they desire but don’t necessarily need) and needs (essential items like food and clothing). Teach them to prioritise their spending.
Please be patient and consistent as you try to instil a savings culture in your kids. These things may not stick on the first try but as they grow, these principles will begin to manifest. Do not forget to celebrate when they reach a savings milestone. This will encourage them to continue to save.