Saving is one of the most important financial habits to teach children as early as possible, as it has long-term effects that are very beneficial for the future.
But it turns out that not all children can save, there are often excuses not to save or even no budget to save.
Effective Ways to Teach Children to Save
Here are some effective ways to teach children to save money from an early age:
1. Set an Example
Parents are the first and most important example in a child's life. Therefore, show your children how important saving is by demonstrating that you have a habit of saving money yourself. Talk openly about your financial goals and how saving helps you achieve them.
2. Teach Basic Concepts About Money
Teaching the concept of money from an early age is also very important. Explain to your children the meaning of money, how money is earned through work and effort, and the importance of managing money wisely. Teach them the difference between needs and wants and how important it is to prioritize spending.
If children are accustomed to doing this from an early age, they will grow into a person who values money more and thinks twice when spending money on something that is not important.
3. Use a Piggy Bank or Savings Account
Give your children a piggy bank as a tool to save money. Teach them to set aside some of the money they receive, whether from pocket money, gifts, or earnings from small jobs. Also, teach them about saving accounts and how to save money in the bank.
4. Set Savings Goals that Children Can Understand
Help your children set savings goals that are appropriate for their age and interests. For example, saving money to buy a desired toy, pocket money for a vacation, or savings for future education. A clear goal will give children more motivation to save.
So, don't also get used to immediately fulfilling children's requests even if parents are able to. Instead, teach children to understand that to get something you have to struggle.
5. Involve Children in Family Money Management
Teach children about the concept of budgeting and how to allocate money for family needs. Involve them in simple spending decisions, such as buying groceries or school supplies. This helps them understand the value of money and the importance of managing finances.
6. Reward Saving Achievements
Appreciating your children's efforts in saving money is very important. Give praise, motivation, or small gifts as a form of appreciation when they reach their savings goals. This helps reinforce positive habits and motivation to continue saving.
7. Teach Advanced Financial Skills as Your Child Grows
As children get older and understand more about finances, teach them more advanced financial skills such as calculating interest on savings, comparing types of investments, or creating a simple financial plan.
8. Provide Knowledge on the Importance of Investing
When children are old enough, teach them about the importance of investment for wealth growth. Talk about simple investment concepts such as gold, stocks, bonds, or mutual funds, according to their level of understanding.
9. Provide Consistent Support and Encouragement
- Make the process of learning to save money a fun and rewarding journey. Provide consistent support, positive encouragement, and provide new knowledge gradually according to the child's development.
- 10. Check and Evaluate Periodically
Evaluate your child's saving progress regularly. Talk about achievements, obstacles faced, and future plans. This helps children learn from experience and continuously improve their financial habits.
By teaching your children to save from an early age, you are equipping them with valuable financial skills for the future. In addition, you are helping to create habits that will help them manage money wisely and independently later in life.
Through Saving Money, You Can Prepare a Bright Future
While teaching children to save from an early age, remember also as parents we must prepare an education savings fund to support the child's future.
Because of course, every parent wants the best for their children's future, especially in terms of education. However, the cost of education that continues to increase every year is a challenge for families. Economic inflation that continues to move forces parents to have careful financial planning to meet the needs of children's education funds.
Sun Life Indonesia in collaboration with BNI comes up with the right financial planning program solution through the Academy Cash program. This program is designed to provide various benefits for parents who want to provide the best education for their children.
Some of the Benefits of Academy Cash Program:
- Provides Education Funds from Elementary to University
This program provides education fund protection for education levels ranging from elementary school (SD), junior high school (SMP), high school (SMU), to college. You can plan your payment time according to the program you choose, giving you the flexibility you need.
- Favorable Education Fund
If the insured person dies, this program provides protection benefits in the form of 100% sum assured. In addition, the education fund in the form of scheduled stages is also provided in the same amount, providing a comprehensive guarantee for the future of your child's education.
Program Terms and Conditions:
The currency used is Rupiah, with the insured's entry age ranging from 30 days to 65 years old. While participants or premium payers are aged 18 to 70 years old.
This program provides a protection period ranging from 11 to 17 years, according to the desired level of education.
With this program, you can be more calm in planning for the future of children's education without having to worry about being constrained by increasing costs. Through careful financial planning and the right solution, you can realize your children's dreams and aspirations to have a quality education without having to be financially burdened. With Academy Cash, your children's bright future can be planned better and more certain.
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