Top tips for young savers
Whether it’s two toppings on the pizza instead of four, new jeans this month or next, or giving up free time for a part-time job, money already plays a big role in your decisions. And that’s only the start! Welcome to a lifelong relationship with money:
- Get into the habit of budgeting so you can make the most of your time and money.
- When you do spend, save what’s left over. The same goes for extra pocket money. Keep your savings in an account and earn interest in the meantime.
- Small amounts quickly add up no matter how little you save each week.
- Money doesn’t grow on—you know what! Your parents want you to be secure and have it better than they did, but they are not a bottomless well of money! It’s easy to get carried away so try to save as well as spend.
- Be prepared to make choices – you can’t have everything, all of the time!
- Have a spending limit and stick to it. Break down your weekly limit and budget for each day. If you spend too much early in the week, cut back later on.
- Talk to your parents and friends about money. By discussing what’s involved in paying for holidays, a new TV, car, or even groceries, you find out just how many expenses there are in life, what things cost, what good value is and when you’re being ripped off. This information can help you make healthy financial decisions.
Tips to encourage saving
- Consider rewarding children for regular saving. The amount saved isn’t critical, the habit is important.
- Encourage children not to buy on impulse, take time to consider their decision.
- Help children identify long & short-term savings goals. Sometimes saving only becomes important when the reward can be seen.
- Develop a savings plan or calendar to highlight when the savings goal will be achieved.
- Give pocket money in small denominations to encourage children to put a little aside.
- Consider linking pocket money to chores. This helps teach that money must be earned.
- If pocket money runs out, don’t rush to replace it. This would defeat the purpose of providing it.
- Give children a piggy bank, or even better, bring them into the credit union to become a GR8 saver!