JMMB A+ Savings 3
At JMMB we believe that teaching children the importance of money choices and the act of saving money are essential parts of learning and growing. The values and responsibility parents instill in their children -- even at an early age -- can help form their view of money and how to exercise discipline both financially and in other aspects of life.
It's never too early to introduce the topic of money to your child, especially if you approach the process by leading through example. Use family dinnertime to talk about the importance of money and explain your daily actions to your child -- just make sure it's age-appropriate.
Did you know?
Children as young as three years old can grasp financial concepts like saving and spending. And a report by researchers at the University of Cambridge commissioned by the United Kingdom’s Money Advice Service revealed that kids’ money habits are formed by age 7.
Easy ways to introduce money to children:
1. Take your child to the bank and explain what a deposit and withdrawal is -- and how the money gets there in the first place. JMMB has made this simple with the A+ Savings account, where children can start an account with no nuisance fees, online banking viewing, telephone access and quarterly statements.
2. Explain why you save money – this is important as children who know the value of money and saving for the future, will be able to apply these tools to their financial lives as they get older, better equipping them for a secure future.
3. Limit spontaneous family spending and teach the importance of saving for larger purchases.
Using a money-saving tool, such as an A+ Savings account from JMMB, allows your child to make his/ her own money choices along with short-term and long-term goals. This in turn helps them to secure a more fruitful future and steers them in the right direction as they prepare for adulthood.
How amazing would it be if your child learnt to save his / her money to buy presents for family members for Christmas or even to buy you a present for your birthday. This will give them a sense of responsibility and accountability.
According to Money Savvy Generation, a good age to start an allowance is 7 or 8. An allowance can be used as a gateway to budgeting and money management, and it provides a child with the necessary tools to learn about savings and cause and effect.
Allowance tips:
- Make a budget
- Budget out a weekly allowance for spending money -- lunch money, after school snacks at the sports field, etc.
- Base it on work
- Base the allowance on your child's performance around the house (with chores) from the week prior.
- Be clear
- Set guidelines ahead of time so your child knows that if he spends it all in one place, there's nothing left for the rest of the week.
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