Saving and Investing

Money Smart concept #3
Saving and Investing
Kids get money from parents, grandparents and other relatives during special occasions. Some parents take the liberty of keeping the money for their children. Others allow their children to keep it in a safe place. Unfortunately, very few parents take the opportunity to teach children about saving investing and banking institutions.

            As parents and teachers, we need to teach children the concept of saving. Money management includes knowing where to put savings. We should open the eyes of our children to how to grow money. Explain to children that the longer money is left in the bank, the more interest it will earn.
            Also tell them that there are ways to grow money other than putting it in a savings account. This will introduce older children to the world of investments.
            There are three ideas you can try as a parent to explore the concept of saving and investing:

4 jar method Piggy Bank
            Introduce the 4 jar method by setting up 4 jar/clear containers. Label the containers SPEND, SAVE, SHARE, INVEST. Ask your child to put part of her allowance into the jars every week to practice proper money management. Discuss the importance of each jar and encourage your child to have specific targets for each jar( e.g. share P50 with church every Sunday, save for a bicycle, etc.) or discuss the proper percentage to put in each jar (e.g. save 10%)
            For younger kids, you can simplify by just giving them one piggy bank. Your child may choose to have a goal for saving (e.g. a toy). Encourage her to put in money gifts or loose change until she meets her goal.

My Bank Search
            Help your child open his own bank account. Take your child to visit banks that have special accounts for kids. Ask about the details of opening an account. Make your child compare rates of different banks and mutually come up with a decision on where to open the account. Show your child a sample of a deposit and withdrawal form and practice filling it up at home.

Stockbroker watch
(For older children and young adults)
            Introduce your child to the world of investments and stocks. Explain how you can partly own a company by buying its stock. Point out listed companies in the newspapers whose service or product your child may be familiar with or interested in. make your child pick out a stock and pretend to be a stockbroker by monitoring it for a week.


Value / price per share
Appreciation or depreciation

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