As a kid, you don’t have to worry about money matters, because your parents or guardian are always there to back you up. And for a very long time, they will be taking care of all your needs and wants. So they won’t ask you to pay for anything or manage money matters. Besides, they also give you some cash as your pocket money, be it monthly, fortnightly or weekly.

It doesn’t matter how many times you are given pocket money, what matters is how wisely you are spending or saving it. You may have heard them telling you to get into the habit of saving money, as it is important that you develop this habit while you are still young.

Moreover, it’s important to understand how saving money as a child can have lifelong implications. A habit that becomes established early on may not seem significant in the short-term, but can end up playing an important role later in your life.

Spend less, save more

The habit of saving money may be a crucial life skill, but it’s not one that always comes easy. As you are young, you are tempted towards a lot of things that you insist your parents buy for you, such as fancy stationery items or branded accessories. Some of these things you are easily given, but there are times when you hear your mum or your dad telling you it is too expensive, or to buy it from your pocket money, because it may seem a waste of money for your parents.

You have to consider the pros and cons of buying it, or in other words, ask yourself some questions like, ‘Is it really important?’, ‘What is the use of it?’ and ‘How long will it be helpful to me?’, ‘Is it really necessary or is it a stuff that I just want to show off to my friends?’

When you have considered all these points, you will come to the conclusion whether you really need that thing or not. And when the initial urge to buy it subsides, you will not crave it so badly and ultimately save your pocket money.

Apart from that, saving money is a habit that can help you reach your financial goals later on in life. Whether it’s for a party or other little expenses, there are numerous benefits of starting to save money early on in life. Some of the benefits are as follows:

Builds confidence and self-discipline

If you have some money saved, it gives you confidence. For instance, if you are out with your friends and you have spent all the money that your parents had given you, you can still remain confident as you already have some saved pocket money. So you don’t have to worry about what to do in the coming days without money until it is time to get some pocket money again and you don’t have to ask your parents for more money.

Having some saving gives you more control over your life.

Stability in future

Saving money is the first step to handling your own finances in the future. If you don’t start developing the habit of saving now, you might never be able to do it in the future and will not have enough money to do what you want in your life.

For instance, you may have heard people talking about loans and being in debt. Yes, kids, if a person has a habit of saving money, there are rarely any chances of getting into debt. So, the key to getting through tough times in life is to have some saving. If you save money now, you have the option to use it later if you need to.

You become more responsible

Right now, you don’t have to worry about paying for anything, because your parents are paying for everything. But let’s accept the fact that you can’t rely on your parents all your life, sooner or later you have to start earning yourself. And as you get older, you’ll have to pay for more and more things yourself.

This can be challenging at first, because you don’t know how to manage the amount you have started earning. But if you keep saving some money, you will eventually build a strong foundation for your future financial independence. You might not be able to save a lot, but don’t worry, even a small amount of money put away each month can add up to a lot over time.

Saving money helps build wealth

Yes, wealth doesn’t come only by putting money in different businesses, as you might have seen these days. Wealth can also be accumulated over time. If you start saving money early from your pocket money, it will have time to grow and can add up to a decent amount over time.

You will be amazed to realise how easily you can pay for your fun, educational and extra-curricular activities and also help others from your savings.

You’ll have an emergency fund

No one can predict the future, so it’s always a good idea to have a rainy-day fund. You don’t know when an emergency will happen, but when it does, you’ll be glad you have some money saved to get through it.

Saving money for an emergency fund is one of the best ways to protect yourself from any trouble and handle any unplanned expenses that come your way suddenly.

Keep a money box

While adults have bank accounts but, as kids, you can have a moneybox at first and then a savings account, which your parents can handle. Make sure to keep a small amount of your weekly or monthly allowance in your moneybox.

Saving money as a child can have numerous benefits, but it’s important to remember that saving should be done willingly and without expecting anything as a reward from your parents.

It’s never too early to get started on this healthy habit.

Published in Dawn, Young World, August 27th, 2022