Teaching kids to save

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The Yuletide is the season of caring and sharing with loved ones, with children expecting to receive gifts and even cash during this time. This presents an opportunity to teach children about the merits of saving. Kemi Mfon- Bassey, a mother of three, says that saving is a habit that must be cultivated and parents have to teach their kids to save.

She adds that it is no longer profitable for parents to collect every stipend given to kids by family and friends who come visiting. Kids should be encouraged to have piggy banks where they can drop their savings. According to her, one should reward kids for certain chores that they do, which may include washing the cars, tidying the kitchen and encouraging them to save 95 per cent from that cash reward.

“At the end of six months, put together what each child has saved separately and then add 100 per cent interest on each of them. This means that whoever saves more has more interest and vice-versa. This will encourage each kid to save more so as to earn more and they will eventually see saving as a lifestyle,” she notes.

WHAT TO DO

Mr. Basil Adimorah, a human capacity trainer, says no age is too young to teach a kid to save. He says, “Especially at that late stage of nursery school, you can teach them to understand what money means. Teach them to work and earn money even though they are small because when you give them money most times, they will think it is easy to get.

“The principle is let them do certain chores that ordinarily Teaching kids to save they would not like to do, like washing cars, for which they will earn money and you will see them eager to work. I do not mean the usual chores they would ordinarily have done because they won’t be paid for that. I mean the one you would have paid someone to do like washing the cars, sweeping the comaira Cornelia Oseghale Nwise pound, etc.”

Adimorah adds that for parents, who would like their kids to give tithes, the kids cannot do so if they have not worked for their money. Giving them money to give, as tithe, is not proper because it is not their money, as they have not worked for it.

“So, let them do those chores you would ordinarily have not told them to do and when they know they will earn extra money, they will insist on doing it. To encourage savings, get them piggy banks to grow their savings. You will notice it is fun for them and they will guard it jealously, anxiously waiting for the day the piggy bank will be broken,” he said.

He points out that, because the children are eager to save, they may not spend their entire lunch money in school. This will help them to get accustomed to saving and it trains them to be independent and business-minded. Once the piggy bank is broken, you may use the proceeds to buy for them what they want and what is left to open savings accounts for them.

HIS ADVICE

Start early by teaching children the importance of saving as that will help them when they become adults. Always encourage them to save by getting them individual piggy banks.

RECALL

• No age is too small to teach kids to save; start early.

• Teach them to work and earn money so they can understand its value.

• Get them piggy banks to encourage savings.