As a child, you don’t have to worry about money matters because your parents or guardian are always there to support you. And for a very long time, they will take care of all your needs and desires. So they won’t ask you to pay anything or deal with money matters. In addition, they also give you money as pocket money whether it is monthly, fortnightly or weekly.
No matter how often you are given pocket money, what matters is how wisely you spend or save it. You may have heard them tell you to get into the habit of saving money, because it’s important that you develop this habit while you’re still young.
Additionally, it’s important to understand how saving money as a child can have lifelong implications. A habit that sets in early may not seem significant in the short term, but may end up playing an important role later in life.
Spend less, save more
The habit of saving money can be an essential life skill, but it’s not always easy. As you are young, you are tempted by many things that you insist your parents buy for you, such as fancy stationery or designer accessories. Some of these things are easily given to you, but there are times when you hear your mom or dad telling you it’s too expensive, or to buy it with your pocket money, because it might seem like a waste of money. money for your parents.
You need to consider the pros and cons of buying it, or in other words, ask yourself questions like “Does it really matter?” “, ” What is it used for ? and ‘How long will this be useful to me?’, ‘Is this really necessary or is this something I just want to show my friends?’
When you consider all these points, you will come to the conclusion whether you really need this thing or not. And when the initial urge to buy it wears off, you won’t want it so much and you’ll save your pocket money in the end.
Other than that, saving money is a habit that can help you achieve your financial goals later in life. Whether it’s for a party or other small expenses, there are many benefits to starting to save early in life. Some of the benefits are:
Builds confidence and self-discipline
If you have money saved, it gives you confidence. For example, if you are going out with your friends and you have spent all the money your parents gave you, you can still be confident because you already have some pocket money saved up. So you don’t have to worry about what you will do in the next few days with no money until it’s time to get pocket money and you don’t have to ask for more. money to your parents.
Having savings gives you more control over your life.
Stability in the future
Saving money is the first step to managing your own finances in the future. If you don’t start building the habit of saving now, you may never be able to save in the future and you won’t have enough money to do what you want in life.
For example, you may have heard people talk about loans and debt. Yes, children, if a person is used to saving money, there is rarely a chance of getting into debt. So, the key to getting through life’s tough times is to have some savings. If you save money now, you have the flexibility to use it later if you need to.
You become more responsible
Right now, you don’t have to worry about paying anything, because your parents pay for everything. But let’s accept the fact that you can’t rely on your parents all your life, sooner or later you have to start earning a living. And as you get older, you will have to pay for more and more things yourself.
It can be difficult at first because you don’t know how to handle the amount you started earning. But if you keep saving money, you’ll eventually build a solid foundation for your future financial independence. You may not be able to save much, but don’t worry, even a small amount of money set aside each month can add up over time.
Saving helps build wealth
Yes, wealth doesn’t just come by putting money into different ventures, as you might have seen these days. Wealth can also be accumulated over time. If you start saving money with your pocket money early, it will have time to grow and can grow to a decent amount over time.
You will be amazed at how easily you can pay for your fun, educational and extracurricular activities and also help others with your savings.
You will have an emergency fund
No one can predict the future, so it’s always a good idea to have a rainy day fund. You don’t know when an emergency will happen, but when it does, you’ll be glad you saved some money to deal with it.
Saving money for an emergency fund is one of the best ways to protect yourself from any trouble and manage any unexpected expenses that suddenly come your way.
Keep a piggy bank
While adults have bank accounts, but, as children, you may have a piggy bank first, then a savings account, which your parents can manage. Be sure to keep a small portion of your weekly or monthly allowance in your piggy bank.
Saving money as a child can have many benefits, but it’s important to remember that saving should be done voluntarily and without expecting any reward from your parents.
It’s never too early to adopt this healthy habit.
Posted in Dawn, Young World, August 27, 2022