For this post, I will be sharing how we can cultivate young savers with simple steps.
Other than sending your kids to the daily tuition classes, weekly piano lessons or foreign language classes, have you ever think of sending your kids to financial planning classes in their early years?
If yes, you’re really
But, do we have such classes yet?
No, at least within my surroundings, I haven’t heard anyone sending their kids to money management classes yet.
Since there are no formal financial education classes, parents and family play a very important role as a training ground to prepare a child to manage their future financial matters.
Perhaps you think that it is hard to have a
But do you know that what you are practising every day, indirectly giving them a strong message which directly shapes their financial mind?
Thus, I came up with 8 simple practices to cultivate young savers.
8 simple practices to cultivate young savers
These are 8 simple practices to cultivate young savers:
1. Bring your kids to the ATM or Bank whenever you do transactions
The next time you need to withdraw some cash, bring along your kid to the ATM. And share with them the function of banks.
Their curiosity nature will result in questions they ask about banking institutions.
Such as ‘Why
2. Bring them along when you settle your monthly utility bills
This will show them the monthly commitment they need to prepare when they start their own family or live on their own in the future.
3. Give them pocket money or daily, weekly or monthly allowance when they started to know the value of money
The most suitable time to give them pocket money is when they started their kindergarten years.
Do not give more than enough.
4. Prepare a big piggy bank for them
Teach them to save from their pocket money or allowance to buy desired stuff (toys, books, computer games).
5. Open a saving account for them at local banks
Encourage them to deposit their savings or cash gifts such as
Perhaps can motivate them by adding some interest every time you deposit the savings for them.
6. Establish short term and long term saving plans for them
Short term saving plan could be buying that computer game.
Long term savings could be saving for their tertiary education.
7. Bring your kids and your grocery shopping list along for your weekly shopping
Invite them to write what they need in your grocery shopping list.
Teach them to compare prices before
8. Most importantly, show by example
Do not lavish yourself with an expensive shoe that cost RM500 while saying ‘NO” to your kid when she requested you to buy her a doll set of RM9.90.
Instead, show your kids you are practising wise money management.
Always remember their little eyes are watching us closely.
Final thoughts
I learned most of the practices above by observing my 8-years-old niece’s attitude towards money.
If you have any other practices to add in, do share them with me.
I hope you will have a successful financial sharing session with your kids.
And also hope we will be able to build
