Page 23 - Cornwall Issue 5 2024

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

Cornwall View • Issue 5 2024 21