Stephan Joubert A Penny Saved is a Toy Earned Teaching our kids the principle of saving 13May2024

A Penny Saved is a Toy Earned
Teaching our kids the principle of saving

Before we lose ourselves in the diverse and complex world of investment opportunities let us take a step back to when we were kids. Do you remember the time where there was that one toy that you convinced yourself you desperately needed? The one that was the talk of the playground, prominently displayed in the toy store window, the one that, just as luck would have it, cost more than your pocket money. You diligently saved every cent and rand coming your way and yet, it seemed like you were not getting any closer to that price.

Now, as an adult, with a wealth of experience and knowledge gained you have the golden opportunity to teach your children about the value of saving.


By Stephan Joubert CFP®


The Early Bird Catches the Worm

Start teaching your kids about saving at an early age. It’s never too soon to learn about the value of money. Consider starting with simple activities like saving coins in a piggy bank or setting aside a portion of their allowance each month. It is much easier to build good habits from the start than to try and change bad habits later in life.

Make it Visual

Kids are visual learners. Start by giving them a clear jar to save their money. As they save, they can see their money growing. Every time they add a coin or a note, they’ll see the increase, which can be very exciting! It’s much more effective than a traditional piggy bank where the money disappears and cannot be seen.

Set Goals

Just like you have that dream home, car, or vacation you are saving for, your kids will have something they are saving for as well. Help them set a realistic goal. It could be a toy, a book, or even a day out. Write down the goal and how much it costs. Then, work out how much they need to save each month to reach their goal.

Lead by Example

You teach what you know, but reproduce  what you are. Children learn by observing. Show them how you save money and make financial decisions. Involve them in household budgeting activities. This will not only teach them about saving but also about the cost of living and financial responsibility.

Teach Them the Value of Money

Help your child understand that money is earned and not just given. This can be done through chores or small jobs like washing the car or helping in the garden. Once they understand the effort it takes to earn money, they will be more likely to save it.

Encourage Entrepreneurship

If your child wants to earn extra money, support their entrepreneurial spirit! They could set up a lemonade stand, do yard work for neighbours, or sell crafts they have made. This will teach them valuable lessons about earning, spending, and saving money.

Teaching kids about saving money is often overlooked but it is in fact a crucial life skill. It is a skill that many adults are struggling with, especially during these trying times. It is about more than just accumulating wealth; it’s about understanding the value of money, making smart financial decisions, and realizing that sometimes, the best things in life are worth waiting for.

Remember, just as your children require an experienced individual to guide them through making sensible decisions, you too may require the assistance of an expert to guide you through these tumultuous times. Partner with a Certified Financial Planner® to start planning for tomorrow today.


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