If you are 18 or under, most of your financial habits you will have picked up from your parents, grandparents and loved ones.
According to Motlatsi Mkalala, Standard Bank’s Head of Main Market at Standard Bank, these kids would have learnt from the mistakes that their parents made of not saving enough and seen first-hand how people around them suffered financially during the pandemic.
This may have pushed them to start thinking of saving money to determine their own financial future.
Mkalala said that saving from early on will allow kids to achieve their financial goals at a young age and teach them about the financial discipline they need to achieve their ambitions.
It is a worthwhile journey that will teach you how to manage your money and help you become more financially independent. So, to ensure that you save successfully, here are a few tips from Mkalala, outlining the top money habits you can adopt:
Saving money
Put aside some of the money that you earn at your part-time job or receive as your allowance before you spend it. Doing this will ensure that you save money on a regular basis and are less tempted to spend all your money.
Interest-bearing savings or cheque account
According to Mkalala, young people who open an interest-bearing savings or cheque account where they can save their money are more motivated to save.
This will give you the opportunity to have an out-of-sight place to put your savings plus it serves as a chance for teenagers to learn about the effect of interest and allow them to experience the effect of compound interest that will inspire them to save more.
Set goals
Having a savings goal increases the chances of teenagers choosing to save their own money.
They can be a short-term savings goal such as a new video game or a new jacket while a long-term savings goals could be a fancy set of headphones or sneakers.
Track your spending
Kids can keep track of their money with the help of an app or a spreadsheet.
By tracking their spending they can see where they spend their money and have an idea of where they can cut down on their spending.
IOL Business