Laying a nest egg for kidsWorld Savings Day To get children to recognise the importance of saving, Bank Windhoek suggests starting off with a quick savings goal. Namibia''s financial sector has proven resolute in its intentions to instil a broad-based savings culture among citizens, starting from as young as school-going age.With Monday designated World Savings Day by the International Savings Bank Congress in 1924, Bank Windhoek this week shared a few pointers on helping younger kids grasp the importance of putting away resources for a grander purpose.
“Research has shown that children have trouble imagining the far-off future,” Bank Windhoek executive officer for marketing and corporate communication services Jacquiline Pack says.
“One way to address this is by starting with relatively short-term saving goals.”
She explains that, the more distant or abstract the goal, the more difficult children generally find it to visualise.
“Encourage children to work towards something tangible that is on the not-too-distant horizon, like spending money for a family vacation or an accessory that they have their eye on,” Pack suggests.
“It is also a good idea to teach children the difference between needs and wants,” she says.
Things like school supplies and soccer uniforms, she says, can for example be grouped as needs, while items like movie tickets and designer jeans are wants.
“Most adults know that there are expenses you have to pay, your needs, and discretionary expenses, your wants. Young children and teenagers may have a tougher time making that distinction,” she says.
A simple way to help children start saving is to create a budget.
“You could encourage children to record all of their monthly earnings and expenses in a journal. In addition to recording what they bought and how much it cost, ask them to record why they decided to make the purchase,” Pack says.
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