Financial management must be taught from an early age.
Some people become millionaires and within a few months the money gets finished.
This is due to a lack of financial literacy and management.
A child, who has never been shown how to save money, won’t know how to manage their own finances later on in life.
The real benefit comes with parental guidance on saving, budgeting and spending.
This creates habits that allow kids to effectively manage their finances as adults.
It’s never too early to start teaching kids the importance of saving money.
Opening an interest-earning account for them is a great way to show them how money is protected in a bank and how interest helps money grow over time.
As a parent, set an example by talking about how you save money for items you buy. You can also teach them about value by comparing prices and showing them how they can save by not always buying the most expensive thing.
The goal of saving is to teach your kids about how to avoid debt and save for raiiny days.
- Letter by Norman Maake, Tembisa