Teach your kids to save

By admin
16 August 2013

Teaching your children about saving will stand them in good stead when they’re adults.

About 56 per cent of employed South Africans start to save at the age of 28 when the recommended age is 23 years, according to the Sanlam Benchmark Survey 2013.

Parents play a critical role in teaching children to save, says Lezanne Human, CEO of FNB Investment Products. “Parents across the income spectrum save for their children and in doing so are acting responsibly, however by not directly teaching kids to save, they don’t foster the right savings habits in their children.”

Here are our tips for how to teach young children to save:

-         Make or buy a transparent piggy bank so they can see their money increasing.

-         Open a bank account for them and take them to the bank to deposit their money when the piggy bank is full.

-         Let them save for something specific – a cellphone or skateboard, for example. Offer to subsidise them rand for rand.

-         Don’t play policeman over their savings; if they decide to spend it on something frivolous, let them. If they’re unhappy about the cellphone or skateboard that remains out of reach they’ll begin to better understand the concept of saving.

-Elna van der Merwe

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