1. It Gets Them In The Savings Habit
Studies have shown that it takes anywhere from 18 to 254 days to form a habit. Regularly putting money into a saving account should be a habit of every Malaysian. Getting young children into
2. It Teaches Them The Value Of Money
We have all heard the expression “money doesn’t grow on trees” but for many children, it’s nothing more than a funny phrase that their parents say from time to time. By opening a saving account for your children where they can deposit their allowance, money they receive for their birthday or Chinese New Year. Your children will start to learn the value of money as they watch their balance slowly grow.
3. It Gives Them A Sense of Responsibility
I clearly remember the feeling of responsibility I had when I would line up every week to make my deposit into my saving account. This feeling of being responsible for my own money, no matter how small the amount was, is part of what I believe made me a good steward of my money into adulthood.
4. It Gives Them Spending Options
Giving your children spending options could be another excellent method to foster a sense of responsibility. For instance, spending money on a family vacation. Instead of your children asking for different souvenirs, treats, having their own money saved up gives them the option of spending it if they desire. Ensure to tell that once it’s gone, it’s gone!
5. It Gets Them In The Game
Seeing your bank balance goes up is pretty exciting. For a kid, logging in and seeing exactly how much money they have saved, and what they can buy with their savings offers a strong positive reinforcement for continuing to save money. It gets them in the savings and money game early in life. Teaching your child with some financial knowledge now will assist them up for financial success in the future.
This article was first published on MoneyCompass.