Warren Buffet once said, “Do not save what is left after spending; instead spend what is left after saving.” Warren said this knowing very well that it is not an easy thing to do. People rarely think of saving before spending what is left.
Saving is not as easy as many people think. The truth is, saving is a journey that needs sacrifice and determination. Savings is like a hobby, something one should enjoy doing and always looks forward to. It is called a “savings culture” because it should be something that is engraved into you.
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Teaching your kids about money is something every parent should do. It will save them a lot in the future. One way of teaching your kids about money is to open a savings account for them and involve them in running it. Let them know how and why they are supposed to save.
Some banks such as the Co-operative Bank of Kenya have bank accounts for these little human beings that not only help them save money but teach them and shape their financial future as well as their perception about money. The account is called Jumbo Junior Account.
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The Jumbo Junior Account is a transactional account designed for children below the age of 18 years for the safekeeping of money. It is an account that trains your kid about money and savings from a very young age. Easy to open and easy to operate.
The account comes with three main features:
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Automatic membership to Jumbo Junior Club that entitles the kid to free ele-bank on opening the account; free birthday card on child’s birthday anniversary.
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Discounted cheques for fees payment
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Interest payable at 3 percent.
Here are the requirements for opening the Jumbo Junior Account:
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Parent’s or guardian’s original ID Card as well as a copy
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Copy of birth certificate of the child
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Minimum opening / operating balance of 500 shillings
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Debit card (optional) @ KES 600
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Copy of KRA PIN
The truth is our children need to know that money has a value that money needs to circulate, that it’s important to pay back any money you borrow and that above all, money with value and ability to create genuine wealth is money that is legal and real, not fake or wash-wash.
There are so many critical skills that children need to survive and thrive in today’s world. Developing solid financial skills is one of these and it’s vital to their future well-being. It’s never too early to begin but equally important is it’s never too late.
This is the conversation that we as parents, other stakeholders like banks, regulators, and teachers need to start and sustain.
