In general, saving means putting aside money from your income in a deposit account, a pension account, or an investment fund. But if we closely analyze the term saving in a more pragmatic way, it’s more than that, and includes reducing recurring costs of

Saving for the Future You Know or Don’t Know Yet

Promote habit of saving in your child

It is very crucial to promote the habit of saving amongst parents as well as children for the secure future of children. Due to the hectic lifestyles of today’s parent’s, they often tend to ignore the importance of saving for their children. The savings – for example in the form of recurring savings or life insurance policies -- can be later used for various purposes, such as: to finance the educational expenses of children; to make an investment in fixed assets for children; for the wedding of children in the future; and to cover other major household expenses.

First, you would need to make a rough calculation of how much savings your child currently has, and how much additional savings she would need in the future.

Here are two useful ways to inculcate the habit of saving in children from on early age.

  1. Depositing change money in a piggy bank is a popular way of saving

  2. Opening a recurring savings account in a bank or a financial institution; allows parents to make a monthly transfer of funds from their account to the children’s account.

 

Promoting the habit of saving by women

Research from many countries has shown that increasing the share of household income controlled by women, either through their own earnings or cash transfers, changes spending in ways that benefit children.

Considering savings as one of the major regular expenses, similar to putting aside money for groceries every month is a great way to positively reinforce good saving habit.

 

Here is how women can cultivate their habit of saving:

Keep track of expenses

Keeping track of expenses help you figure out how much money you spend regularly, which will help you determine how much you can save regularly. Once you have your expenses data, organize them by categories, such as gas, groceries and mortgage, and total each section.

Make a workable budget

Here you organize the expenses you recorded above to plan your spending so as to limit overspending and differentiate between your true needs and wants.

 

Warren Buffet said, “Do not save what is left after spending, but spend what is left after saving.”

 

 

Plan on saving money

For a sound fiscal position, try to put away 10–15 percent of your income as savings. If your expenses are so high that you can’t save that much, it might be time to identify and cut back on non-essentials expenses, such as entertainment and dining out.

Set a goal

Start thinking where you would like to use your savings once your goals have been reached, and that could be anything from purchasing a retirement plan, making a down payment for a house, to going to a vacation. Then figure out how long it might take you to save that amount of money.

Make saving automatic

Nowadays, you can avail yourself of automated transfers like transfer facilities to transfer funds to Citizen Investment Trust and Employment Provident Fund directly from your payroll account. It is a great way to save money since you don’t have to think about it, and it generally reduces the temptation to spend the money.

Review periodically

Monitor the growth in your savings periodically to identify and fix problems if any. Doing that will inspire you to save more, and help you reach your financial goals sooner.