Involve your children in discussions of the household budget – banker’s advice
The important role of parents to teach their children financial discipline from a very young age, is promoted by a local bank as a key aspect of a brighter financial future.
Hayley Allen, Head of Corporate Affairs at Bank Windhoek said money is important, but sadly this is only learned 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,” she emphasised.
Allen shared a few tips for parents to teach their children the importance of saving money.
Give them a translucent 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. Tel 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 recognize 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.”
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 saving into your account. As they grow older, introduce them to cell phone and internet banking such as Bank Windhoek’s Mobile App and iBank.”
Continuous money saving chats
“Have regular discussions with your children on the importance of money and why it needs to be saved. Invite your children to join conversations about the monthly family budget.”
Finally, Allen advised: “ask them what they would like to save for and what 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 lives.”