Page 23 - Boardwalk Meander Issue 5 December 2024

BOOK REVIEWS

SAVINGS SAVVY

Help your children develop a lifelong savings habit

n today’s challenging times with many
feeling the pinch, parents need to instill
the value of saving in their children.
IEngaging in age-appropriate lessons
and activities can transform the concept
of saving into an enjoyable and practical
experience for the whole family.
According to Deloitte’s most recent South
African Investment Management Outlook,
South Africans’ savings rate is as low as
0.5%. This staggeringly low rate is a reflec-
tion of multiple factors including the high
inflationary environment, interest rate hikes
and the rising cost of living.
Trying circumstances like these may feel like
a setback, but they can also be a stepping
stone. Mariné van Brakel, Deputy CEO
and Chief Operating Officer at RCS believes
that as a parent, making an investment into
a child’s financial education and literacy
doesn’t have to be as daunting as it’s been
made out to be.

“Learning how to save begins with complet-
ing simple tasks. Instead of making these
learning experiences overly complex, we
recommend the D.O.T. approach, or ‘do one
thing’ that teaches children fundamental
lessons about finance,” she says.

Van Brakel recommends the following list
of activities as a starting point: achieving goals while making the journey Create a fun, interactive budget and plan
fun and rewarding. together using colourful charts or a bud-
AGE 3 – 5: SAVE COINS IN A geting app suitable for their age. This way,
MONEY BOX AGE 9 – 11: OPEN A SAVINGS AC- they’ll enjoy seeing their savings grow and
Money boxes are wonderful tools to use COUNT learn how to make their money work for
when teaching toddlers the basics of saving. When children become tweens, it’s time them.
Make it fun by shaking the money box to for them to have their own bank account.
celebrate their progress, letting them hear You can start by explaining the basics of AGE 15 – 18: TEACH YOUR CHILD
the jingle of coins. This simple, hands-on how a savings account works and why it's ABOUT CREDIT MANAGEMENT
activity makes saving tangible and easy for important. Take your child to the bank or set Teaching teenagers about credit manage-
young minds to grasp. As they reach small up an account online together, letting them ment can set them up for financial success
but significant milestones, children will not be part of the process. Encourage them to in adulthood. Start by explaining the
only learn the value of money but also gain deposit money they've earned from chores, basics of how credit works, including credit
a sense of accomplishment that boosts allowances or gifts into their new account. scores, interest rates and the importance
their confidence and growth. of building a good credit history.
Doing this will teach them valuable financial
AGE 6 – 8: CREATE A VISUAL SAV- skills, responsibility and the benefits of sav- You can even show them your own credit or
INGS GOAL CHART ing for the future. Plus, they’ll feel a sense account card statements and explain how
Together, you can create a chart with fun of pride and independence knowing they to read them, emphasising the importance
graphics and vibrant colours, breaking have their own ‘grown-up’ account and their of paying off balances in full each month to
down the total amount they need to save own physical or digital bank card. avoid interest charges.
into smaller, manageable amounts. To give
your child something to work towards, add AGE 12 – 14: START WITH SIMPLE RCS also has a practical tool for teen-par-
pictures to the chart of what they would like BUDGETING ents to use and recently partnered with the
to buy, such as a book, game or treat. Cele- Learning how to budget can be fun too. You Welltec Group to give RCS customers access
brate milestones along the way, reinforcing can begin by creating a list of all your child’s to Credit Gateway. This portal provides
the idea that every little bit adds up. sources of income, such as allowances, credit management tools as well as expert
birthday money or part-time jobs. Then, advice and recommendations on how to
Teaching kids about saving in this visual way categorise their expenses such as snacks, manage credit responsibly and develop
reinforces the importance of setting and hobbies or saving for bigger items. good financial habits.

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Boardwalk Meander Estate Issue 5 · 2024