Saving smart!

Published January 18, 2025
Illustration by Gazein Khan
Illustration by Gazein Khan

New Year always means setting new goals, right? A lot of us are probably aiming to crush it academically this year, whether it’s acing the tests or getting top grades in class. Some of you might already be hitting the books hard to make it happen. And then, some have resolved to declutter their desks from the very first day of the year. Isn’t that true?

Since this fresh start inspires all of us to reset and restart, why not add one more goal to our list of resolutions?

It’s a simple, yet powerful habit that should be developed from a young age — saving money. Whether it’s your pocket money or your earnings, being budget-wise and learning to save is a life skill that can benefit you greatly in the long run.

Value what you receive

As kids, life often feels simple and carefree. You don’t think twice about how you get all the clothes, toys, necessities or even luxuries of life, whether it’s that cool new gadget, a favourite snack or a colourful fancy stationery item. You simply ask your parents and sooner or later, they provide it. But if they say no, it might seem like they don’t value your wants or needs.

What you, as a kid, often overlook is the effort behind it. Whether your parents are running a business or doing a job, they pour their time and energy into earning money to support the household. Earning money isn’t as effortless as it might seem.

Let’s put it into perspective: imagine your father asks you to help clean and organise the house for a day. You put in hours of hard work, scrubbing, dusting and tidying up every corner. By the end of the day, you’re tired but proud of your effort. As a reward, your parents give you something you’ve been longing for. That reward would feel extra meaningful because you earned it through your hard work.

Now imagine your sibling casually taking or ruining that reward without considering the effort you put in. Wouldn’t it frustrate you? That moment could teach you a valuable lesson: when you work hard for something, you know its value; the same applies to when you waste your parents’ hard-earned money, in buying unnecessary items, you waste their time, energy and hard work in a matter of minutes.

This is why learning the value of money and effort at a young age is so important. It helps us appreciate not just the things we receive, but also the hard work that goes into earning them. So always appreciate and be humbled by what you receive.

Getting an allowance

If you’ve reached an age where your parents have started entrusting you with pocket money, it’s time to think wisely and be responsible. Understand that your parents are trusting you that you will keep track of the money you spend. Some parents provide pocket money daily, some weekly and some monthly. The amount you receive as gifts on occasions such as Eid and birthdays, or even by doing extra chores around the house, is also part of your pocket money.

The idea of pocket money is to save or spend on things that one needs and that’s not wrong — after all, it’s one’s possession. However, times have changed. Things are no longer as affordable or simple as they used to be. Life today is full of competition and materialism. The desire to own what others have been at its peak and everything seems to come with a higher price tag.

You might have heard your mother or grandmother talking about the rising prices of grocery, or discussing how things were much cheaper in the past. That’s true, things are far more expensive now than they used to be. But for now, let’s not dig into the complex reasons behind this, the important thing to understand is what to do in the world of today.

Your pocket money is something to be thankful for. Instead of spending it carelessly, learn to save it as much as you can. And for that, you always need to give a second thought to if you really want to spend money.

Avoiding impulse purchases

As youngsters and kids, impulse purchases are quite common. The colourful, shiny items and the latest trendy gadgets, everything seems so appealing that it becomes difficult to differentiate between what you ‘really’ need and what you’re buying out of impulse. That’s often when your parents step in and tell you that you don’t really need that particular item. And yes, that’s also when you might get grumpy with them, right?

But let me remind you: trusting your parents or guardians is essential because they know what is the best for you. If I were to simply tell you not to buy things on a whim, chances are you wouldn’t fully understand — unless you’re a bit older and more aware. So instead, I urge you to pay attention to what your parents try to tell you when you are urging them to buy you anything.

Here’s a helpful tip: write down the items you genuinely need and create a list. Share it with your parents and take their advice. Making a list not only helps you avoid impulse purchases, but also reduces the chances of spending money on non-essential items. Over time, as you wait to buy something, you may make wiser decisions about whether you truly need it, and you might even decide to opt for something else you actually need.

This also helps in building a good habit like learning to be patient. You also learn that you can’t have everything you want immediately and that sometimes you need to wait and save.

Joy and value of saving money

For those of you already into the habit of saving money, I bet you know how it feels to buy something you’ve been saving up for — it’s the best! Saving isn’t just about buying fancy stuff; it’s actually helpful in many ways.

Having a goal in mind, like that cool new gadget or that awesome stationery you’ve been eyeing, makes saving way more fun. Plus, it teaches you to be patient, stay disciplined and appreciate how hard work pays off.

Illustration by Gazein Khan
Illustration by Gazein Khan

Using a savings jar or bank account

Traditionally, a mud container shaped like a vessel was a must-have in every household. Both kids and adults would save money in it — usually coins left over from purchases, but sometimes even small notes were inserted through the slit. Once it was full, the only way to access the money was by breaking it open.

Modern savings jars or piggy banks, which are far from ordinary, can be very motivating for everyone. With varied designs and fancy locking systems, they allow you to see your savings grow as you add to it.

Additionally, many commercial banks now offer special accounts for children, where parents can manage the account simultaneously. If you open an account in a bank, it will help you learn about saving money while giving you a sense of responsibility. Watching the money grow in a bank account can make saving feel more official and rewarding, encouraging them to continue their financial journey.

Earning at a younger age

In many countries, kids take on additional chores around the house or help neighbours with tasks like gardening or pet sitting to earn a small amount of money once the job is done. In our part of the world, considering the security and other sensitive situations, it may not be advisable as for now.

However, small entrepreneurial activities, such as setting up a juice, water or snack stand (individually or as a group), or selling some DIY items online can be a great alternative.

Moreover, the growing trend of selling handmade crafts and art pieces can give you fun and creative ways to earn money while also learning valuable business skills.

The importance of financial literacy

Financial literacy is not just for adults in a family. The more you learn about money and finance from your parents today, the wiser decisions you’ll make in the future. It’s not only about saving; it’s about budgeting, prioritising needs over wants, and learning how to make your money work for you.

Don’t worry, I’m not pushing you into finances or trades. It’s simply about understanding that being mindful of your ‘spending and saving’ habits is key. Knowing how to manage money is just as important as earning it, and it prepares you for the future when money management becomes a vital life skill.

Money lessons through play

We learn by playing, don’t we? Your teacher makes everything interesting for you, using tools like audio-visual aids that make even serious and complex topics easy to understand. Similarly, money matters are complex and serious aspects of life that cannot be ignored. The more you learn about saving and earning money, the more equipped you’ll be to handle these matters confidently.

To make money matters interesting, play board games like Monopoly or Payday during your leisure. These games are not only fun, but also teach valuable lessons about money management, as you buy property, lose it, get into debt and more. Additionally, there are many interactive computer games and apps designed to help you learn the basics of budgeting and saving.

Starting today, learn to save money and spend it wisely. If you really want, do spend on your desires, but be mindful of the difference between necessities and luxuries. Learning to save pocket money is a valuable skill that will benefit you throughout your life.

Published in Dawn, Young World, January 18th, 2025

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