Particularly in today’s economy, developing the habit of saving is a critical skill that many individuals should and must learn. The scarcity of money is evident in almost every aspect of life.
On a daily basis individuals face increased costs for basic commodities. The more complex purchases such as houses, cars or financing higher education take sometimes years of saving and financial planning to achieve. It is therefore important that parents encourage children from the early stages of their life to develop the habit of saving. Several local financial institutions exist which offer different saving options geared at introducing smart money management to children.
First Heritage Co-operative Credit Union offers Young Ones United in Thrifty Habits, more popularly known as Y.O.U.T.H. It requires the child to maintain a minimum amount in the account while benefiting from a range of incentives such as scholarships and participation in the institution’s competitions.
Other institutions which offer savings options include the National Commercial Bank with Save Today and Reap Tomorrow (START) and Jamaica National’s School Savers programme. Still the onus is on parents to inculcate those habits which will encourage consistent saving.
On a daily basis individuals face increased costs for basic commodities. The more complex purchases such as houses, cars or financing higher education take sometimes years of saving and financial planning to achieve. It is therefore important that parents encourage children from the early stages of their life to develop the habit of saving. Several local financial institutions exist which offer different saving options geared at introducing smart money management to children.
Introduce children to the budgeting process It might be tedious at first but it will help them to understand why they do not get everything they ask for
First Heritage Co-operative Credit Union offers Young Ones United in Thrifty Habits, more popularly known as Y.O.U.T.H. It requires the child to maintain a minimum amount in the account while benefiting from a range of incentives such as scholarships and participation in the institution’s competitions.
Other institutions which offer savings options include the National Commercial Bank with Save Today and Reap Tomorrow (START) and Jamaica National’s School Savers programme. Still the onus is on parents to inculcate those habits which will encourage consistent saving.
The following are three top tips to help children learn about saving:
Work on creating a family budget together
Introduce children to the budgeting process. It might be tedious at first but it will help them to understand why they do not get everything they ask for. Be willing to bring up the family budget and the weekly spending limit anytime they ask for a new toy or to eat out so that they understand the thought that is applied to every spending decision.
Formalize their saving
Consider opening up a savings account for your child, either with their allowance money or with any money they make on the side. Unlike a piggy bank, a formal account is more likely to instill a sense of fiscal responsibility. Receiving a bank account statement will offer the child a chance to watch his savings grow over time as well as help to achieve a sense of accomplishment.
Set a Good Example
One of the best things parents can do is to let their child see that they, too, save money. While you should have a formal saving ‘system’ in place, put money in a jar while your child is watching. Tell him or her it’s your savings jar. This will show your child that saving is normal and that you ‘practice what you preach’. Plus, since most young children want to be like their parents, seeing you do it will provide them with money lessons that further inspire them to save.
Motivating your child to learn money management skills doesn’t have to be a boring exercise
With a few creative strategies, you can help teach your offspring the value of money and its potential for growth. You may be surprised that the money adds up over the years and he or she will be able to put it to good use on a rainy day or to fulfill a valuable goal. With any luck, these lessons will last a lifetime.
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Particularly in today’s economy, developing the habit of saving is a critical skill that many individuals should and must learn. The scarcity of money is evident in almost every aspect of life.
On a daily basis individuals face increased costs for basic commodities. The more complex purchases such as houses, cars or financing higher education take sometimes years of saving and financial planning to achieve. It is therefore important that parents encourage children from the early stages of their life to develop the habit of saving. Several local financial institutions exist which offer different saving options geared at introducing smart money management to children.
First Heritage Co-operative Credit Union offers Young Ones United in Thrifty Habits, more popularly known as Y.O.U.T.H. It requires the child to maintain a minimum amount in the account while benefiting from a range of incentives such as scholarships and participation in the institution’s competitions.
Other institutions which offer savings options include the National Commercial Bank with Save Today and Reap Tomorrow (START) and Jamaica National’s School Savers programme. Still the onus is on parents to inculcate those habits which will encourage consistent saving.
On a daily basis individuals face increased costs for basic commodities. The more complex purchases such as houses, cars or financing higher education take sometimes years of saving and financial planning to achieve. It is therefore important that parents encourage children from the early stages of their life to develop the habit of saving. Several local financial institutions exist which offer different saving options geared at introducing smart money management to children.
Introduce children to the budgeting process It might be tedious at first but it will help them to understand why they do not get everything they ask for
First Heritage Co-operative Credit Union offers Young Ones United in Thrifty Habits, more popularly known as Y.O.U.T.H. It requires the child to maintain a minimum amount in the account while benefiting from a range of incentives such as scholarships and participation in the institution’s competitions.
Other institutions which offer savings options include the National Commercial Bank with Save Today and Reap Tomorrow (START) and Jamaica National’s School Savers programme. Still the onus is on parents to inculcate those habits which will encourage consistent saving.
The following are three top tips to help children learn about saving:
Work on creating a family budget together
Introduce children to the budgeting process. It might be tedious at first but it will help them to understand why they do not get everything they ask for. Be willing to bring up the family budget and the weekly spending limit anytime they ask for a new toy or to eat out so that they understand the thought that is applied to every spending decision.
Formalize their saving
Consider opening up a savings account for your child, either with their allowance money or with any money they make on the side. Unlike a piggy bank, a formal account is more likely to instill a sense of fiscal responsibility. Receiving a bank account statement will offer the child a chance to watch his savings grow over time as well as help to achieve a sense of accomplishment.
Set a Good Example
One of the best things parents can do is to let their child see that they, too, save money. While you should have a formal saving ‘system’ in place, put money in a jar while your child is watching. Tell him or her it’s your savings jar. This will show your child that saving is normal and that you ‘practice what you preach’. Plus, since most young children want to be like their parents, seeing you do it will provide them with money lessons that further inspire them to save.
Motivating your child to learn money management skills doesn’t have to be a boring exercise
With a few creative strategies, you can help teach your offspring the value of money and its potential for growth. You may be surprised that the money adds up over the years and he or she will be able to put it to good use on a rainy day or to fulfill a valuable goal. With any luck, these lessons will last a lifetime.
Share this post: