As a parent, one of the important aspects of planning a child's future is providing educational savings for children. As the cost of tuition fees increases, parents should be wise to manage their finances by having educational savings for their children from the very beginning.
At the same time, this is the right time for us to give exposure about savings to children. Although some think it's too early to educate them to save, but, let’s think for a while. Are we willing to see them grow up and fail to manage their finances well because we are negligent in educating them to save from the beginning?
If our answer is no, let's find out how to nurture a disciplined child in financial matters based on the child's age.
Children aged 4 to 6 years
At this stage, the little ones need to be instilled with the principle that liking something does not necessarily mean they must own it. Although this may seem emotionally challenging, they should acknowledge the inherent nature of life.
However, if they genuinely desire something, they should work towards achieving it. For instance, if a child dreams of becoming an astronaut, they should prioritize studying and saving money for education from a young age, as it can be costly.
Here are some fun activities to do with your little ones to help them learn about saving money:
A transparent container as a coin/ money box
- Use a container that shows the contents inside to allow your little one to see the development of the tube. They can also see for themselves the educational savings added every day.
A musical coin/ money box
- Every time the little one puts his savings into the fund, the fund releases music as an encouragement for the little one to keep saving.
Give motivation
- Tell how saving for education can help them to realize their ambitions if they are disciplined and continue to be consistent in saving.
- Expose the little one with a successful personality in financial management and education as evidence of the importance of saving for education.
Set a good example
- Based on studies from the University of Cambridge found that, financial disciplines are formed at the age of 7. According to Islamic teachings, at that age, the little ones absorb the behavior and actions of their parents, therefore, as parents, we should show good example in front of the little ones such as the practice of frugality, the practice of keeping and reading scientific books, so that they can learn and apply these noble values in their daily lives.
Give wages as a reward
- It's a good idea to start teaching children to do their homework early and reward them with wages. For instance, if they tidy up their toys, you can reward them with their desired toy. You can get them age-appropriate coloring tools and coloring books if they enjoy coloring.
- In some preschools, teachers compete to see who can save the most. The winner receives a prize, which can be a valuable tool to teach children about saving money.
- Once the savings bank is complete, you can open an account and take your child to the nearest PTPTN branch, particularly during the Bulan Menabung Simpan SSPN campaign and promotion for opening accounts. This is because there are various gifts in the form of savings jars Simpan SSPN which will serve as precious memories. It's a great way to start saving for your child's education.
Children aged 7 to 12 years
Making wise choices in financial management is very important because it can guarantee a better future.
Here are some fun activities to do with your little ones to help them learn about saving money:
Explain in detail our options
- Explain to the child the importance and reasons for choosing a package by comparing why we choose package A compared to B. For example, "It is better if we choose package A because it has criteria that meet the concept of education savings where package B does not offer it.
- We may also expose them regarding offers or promotions. For example, by opening an Simpan SSPN account, depositors have the opportunity to participate in the Bulan Menabung Simpan SSPN 2023 or other campaigns held by Simpan SSPN especially for depositors. Attractive prizes are definitely waiting for the depositors.
Understanding the concept of 'Wants vs Needs'
- As a disclosure, give the little ones RM10 and let them decide for themselves whether to spend or save. Allow them to make their own decisions.
- If the child chooses to shop, test it with questions like "Is this a want or a need?"
- In this phase, you can also expose the little one to the importance of having an education savings fund. Parents can also open an education savings account Simpan SSPN Prime or Simpan SSPN Plus from as early as 0 days - 29 years old.
Conclusion
It is not too late to educate the little ones and have a saving for their higher education at an early age because they can be more prepared in planning their future which is more guaranteed and without the need for high dependency on us as a parent.
Account opening Simpan SSPN Prime, click here.
Account opening Simpan SSPN Plus, click here.
