Instill a savings culture into your children

Instill a savings culture into your children

Parents play a key role in the financial literacy of children. As they prepare their children for the New Year’s first school semester, the subject of money between the parent and the child, will present itself one way or another.

For a parent, this should be an opportunity to teach their children the importance of saving money for a brighter financial future.
“Saving money is important. But the sad part is that we get to realise this by trial and error. To mitigate this and to ensure that our children do not go through the same ordeal, parents need to teach their children the importance of having a savings mind-set from a young age,” said Bank Windhoek’s Head of Corporate Affairs, Hayley Allen.
Below, Allen shares a few tips on how parents can teach their children about the importance of saving money:

Give them a clear piggy bank
Buy your children a clear piggy bank which allows them to see their money as it accumulates. Inform them that they will be getting money for chores done, good behaviour and grades. Tell them to write down the date and amount in a log book to keep track of the money being saved on a monthly basis. Once the clear piggy bank is full, take it to the bank accompanied by your child and show them how to deposit the money into a bank account.

Open a bank account
A bank account will make the children recognise a financial institution. This will also enable them to start a relationship with the bank at an early age. Let them know that the money will continue to grow with interest as long as they do not spend it.
Children and young adults up to the age of 18 years, can open a Bank Windhoek Solo Account which is a savings and transaction account tailor-made for their needs. The account’s benefits are listed below:
· No monthly service fees and free ATM withdrawals at Bank Windhoek ATMs.
· Access to Cell phone Banking for features such as airtime top-up, Easy-wallet and payments to beneficiaries.
· Favourable interest on funds in the Solo Account.
· Free balance enquiry and mini-statement at Bank Windhoek ATMs.
· Debit and stop orders can be linked to the account.

Lead by example
Leading by example is one of the best ways to teach children how to save. To do this, place your clear piggy bank next to theirs and make time to put in money regularly so that they are also motivated to do the same. Once a month, make an effort to take the children to the bank with you as you deposit your savings into your account.
As they grow older, introduce them to cellphone and inter-net banking such as Bank Windhoek’s Mobile App and iBank.
Also, emphasise that if someone is living within their means, they will be spending money that they can have and if someone is not living within their means, they are spending money which they do not have. This will help them to manage their money wisely and better, both in the short and long-term.

Continuous money saving chats
Have regular discussions with your children focused on the importance of money and why it needs to be saved. Invite your children to join conversations about the monthly family bud-get.
“During the conversation, ask them what they would like to save for and how they would like their financial future to look like. Encourage them to ask questions and inform them that money will always play a crucial role in their lifetime,” concluded Allen.

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