11th Feb, 2016
Old habits die hard, so goes the adage. This means, a habit cultivated at a young age is very hard to let go of. While this saying is at times used to chastise bad behavior, it also means that if you teach a child the right way, it will be hard for them to deviate in future.
That is why one should encourage their children to cultivate a saving culture. Children get money from relatives and their parents and if they are not advised on how to spend and save wisely, they will in future probably become reckless with their money.
It is best to turn normal day to day activities into a learning experience. Take the trips to the bank, supermarkets, grocery stores and ATMs together with the kids and often times the child will take home a lesson or two.
Perception of money applies differently to children of various ages. Here are a few suggestions on how to promote saving amongst your children.
Children this age are just grasping the concept of money. They know once you give the shop keeper a coin, you get a lollipop. It is at this stage where it is advisable to begin teaching them the various denominations. Let the child learn how to differentiate between a one, five, ten or twenty shilling coin. As they continue growing, they get to learn that the various denominations have different purchasing power.
This tender age is instrumental in cultivating habits. Lessons learnt at this tender age are ingrained.
Get the child a piggy bank (most are provided by your bank of choice) and encourage them to put money in it as often as possible.
At this age, kids know that money can get them toys and sweets. They also know that frequently saving in the piggy bank ensures that they get a tidy sum of money in the long run that they can use in buying whatever they want-at the guidance of the parents of course.
It is important for children at this age to learn about delayed gratification. This way, a child will be able to save up to buy a nice toy or a book. Encourage saving and delaying the pleasure of buying a toy for a bigger and better option as this sets the tone for their latter years.
Kids this age should tag along on trips to the bank, ATM, grocery shop, supermarkets so that they can learn the habits. For instance, saving in a bank is important as you can get the money in a lump sum when it’s really important. The child can also start understanding why mummy prefers detergent A over B-because of the 50 shillings difference.
Children this age should learn about long term goals in savings. Introduce the teenager to stocks and let them begin saving for their future early. They grasp the concept of the importance to save money without frequently dipping into their savings and also the need to save on something that will give interests in the long run.
After all, we are preparing the young ones to be responsible adults in the future who are cautious and mature about spending, saving and investing.
Consider opening these accounts for your young ones (https://ke.kcbbankgroup.com/home/accounts/savings/cub-account)
