October 1999 Volume 80 Number 10
"serving the protectors"
Police Credit Union| October 1999 Volume 80 Number 10 "serving the protectors" |
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Does money seem to trickle through your fingers? As working adults, the majority of us would feel that we have very little to show for our efforts, and often our bank account balance reflects this fact.
However, with care you can assist your child to avoid the same fate.
In order to do this, it is vital that your child is taught at an early age of the importance of saving.
Initially, a colourful moneybox or piggy bank will encourage children to deposit monetary gifts and small coins. Saving for young children should be fun, not a chore and parents need to provide them with an incentive. If there is a particular item your child wants, meet him or her half way. For every dollar a child saves, match it. Show children that if they really want something, ie, a new bike, or rollerblades, they can contribute towards the cost and perhaps realize their goal sooner.
As children get older, they can take advantage of the many banking facilities offered through the school system. Alternatively, take your child into the financial institution of your choice, and open an account for him or her.
Accounts can be opened for children of any age. There are primarily two ways of setting up the account. The account can be opened solely in the child’s name, however, until the child is old enough to legibly write his/her name, the account would be restricted to deposits only. Alternatively, parents can open an account as trustee for their child, and operate the account themselves until the child is old enough to take control of his or her own finances.
Children who receive gifts of money for birthdays, Easter or Christmas, should be encouraged to deposit at least half of this sum into a retentive savings account. Similarly, encourage your child to work for his or her pocket money, and allow the child to decide how much he or she wishes to bank. This not only teaches children discipline, which will flow through to other areas such as homework, but also gives them a sense of worth and achievement.
If children get into the habit of saving at an early age, it will provide a solid financial pathway into adulthood.
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