JULIET BAGGYA NSIYONA
One of the communities known widely for the old-age tradition of saving is India. Popularly known for encouraging the saving of chunks of their income rather than consuming it, this tradition is instilled right from birth, so, ideally, each Indian child is aware of the advantages of delayed gratification.
In most African countries, some of the most successful families are Indian. In Uganda, extravagance and showbiz have taken center stage in the lives of most natives. Spending money to make a statement has become the norm, and it is a vice that children unfortunately learn and emulate.
The saving culture is one that we ought to pass down and inculcate in our children at a very young age. Teaching a child to value money and spend it sparingly, or to save it rather than spend it. The idea of piggy banking, which originated over 600 years ago in the 6th century when people would use pots to store or keep their money, has since evolved into more convenient ways like digital bank accounts for children.
As important as saving is, keeping track of your expenses is equally important. Modernized methods of banking have since equipped customers with services that, if used well, can over the long haul result in proper financial management as well as growth in one’s income.
You can teach your child to save for as little as Shs 100. It goes a long way toward teaching and educating a child that if they save Shs 100 for ten years, they will have even more money, i.e., Shs 1,000. With such training from childhood, the discipline of later gratification, and living within your means are taught directly and indirectly.
As children continue to grow, the onus is again on the parents to gradually introduce their children to ways of investing the money they have learnt to save. Methods like the 50/30/20 rule can be taught with examples closer to home. 50% of what they have for expenses (needs), 20% would be saved, and 30% for their wish lists (wants).
Educating children on better ways to use money is key to their development and should be introduced in schools. Some of the easiest ways to start would be by opening accounts like the Cente Junior account for these children, where they too get to have their own banking experience.
A wise man once said that money is the root of all evil. We have seen the extent to which individuals have misused money, however, we can also choose to raise our children to appreciate, value, and with integrity use the money to better the lives of others and their own.
The writer is the Manager of SME Banking Centenary Bank