POLOKWANE – Children are the future of the economy. The sooner you teach your children to be moneywise in the financial world, the better it will be for them as adults and for the national economy in the long run.
“This initiative originated from the American Bankers Association’s educational program. And has been taking place since 1997. The aim of this initiative is to create awareness amongst the younger generation on how to save and work with money,” says Carla Oberholzer, public relations officer at Zeeva.
“Zeeva encourages parents to develop their childrens’ saving habits as early as possible.”
Here are some tips on how to educate your children about money and saving.
- Initiate open communication
The ideal way to get children in the habit of saving is to talk to them about money and the responsibility thereof. “Have regular talks with them and including them in the communication process, for example when it comes to the chores that need to be done for a certain amount of pocket money each month or week.”
- Make the concept tangible
A concrete concept of how to become savvy savers need to be portrayed to your children. Young children need to physically touch and see the money that they save. This makes it easier to ‘feel’ the loss of it when it is gone.
“The swipe of a credit card is not the ideal way to start teaching your children how to save and take responsibility when it comes to finances. This is where piggy banks or savings jars come in for younger children. Let them make a jar for each saving goal, for example one for holidays and one for events like birthdays or Christmas.”
It is also a good idea to open up a savings account when the children get older. This can be an indicator for your kids to know they have shown progress in their saving skills and can now take an advanced step to test if they are a money savvy steward or not.
- Draw up a savings chart
“Let your child assist you in making their own money savings chart. This chart needs to include a timeline that demonstrates how many weeks it will take to save for a certain goal. You can also offer a reward to indicate when they have reached a savings goal.”
- Practice what you preach
What good does it do if you tell your children to be prudent in spending and proactive in saving, when you, as a parent, never show a sign of it? Lead by example and have your own savings jar to put money in regularly.
“Also show them, when you go shopping, what you look out for and what they have to take into account when comparing prices for example.”
Zeeva says it is better to start sooner rather than later with the saving education.
“Educate your children from a young age to be part of a savvy savers generation and prepare them to be financially successful individuals.”
Join Zeeva in creating awareness on how to teach your children to save, you know it is the right thing to do.
