Windhoek – With one week to go to World Savings Day on October 31, Bank Windhoek urges all Namibians to commemorate this special day by starting to save. Even the young can be taught the importance of saving.
Financial lessons can begin as early as preschool. “Research has shown that children have trouble imagining the far-off future. One way to address this is by starting with relatively short-term saving goals. The more distant or abstract the goal, the harder it is for children to visualise it. Encourage children to work towards something tangible that is on the not-too-distant horizon, like spending money for a family vacation or an accessory that they have their eye on,” said Jacquiline Pack, Bank Windhoek’s executive officer for marketing and corporate communication services.
“It is also a good idea to teach children the difference between needs and wants. Most adults know that there are expenses you have to pay (your needs) and discretionary expenses (your wants). Young children and teenagers may have a tougher time making that distinction.
“You can explain that school supplies and a soccer uniform are needs, and movie tickets and designer jeans are wants. Teens may need to be told that when pressed for cash, it is useful to prioritise their necessities so they are never stuck without something that is essential.”
A budget applies to all, no matter how young they are.
“A great way to help primary and secondary school learners understand responsible spending and saving, is to create a budget. You could encourage children to record all of their monthly earnings and expenses in a journal. In addition to recording what they bought and how much it cost, ask them to record why they decided to make the purchase.”
“Branching out from your ordinary piggy bank is a good way to make children understand how banking works from an early age. By opening a savings account, such as Bank Windhoek’s Solo account for children under the age of 18, they will learn to think about how banking works,” says Pack
“In addition to helping protect their money, a bank account offers a way to build their savings with interest. Watching the account grow can help drive home the importance of saving. No matter what age you are, start saving today. Your future self will always thank you,” Pack concluded.