Savings - we all know and understand the importance it holds for the general well being of our financial health. Have you ever wondered what positive turn your financial life would have taken if you had learnt about savings earlier in life? Don’t leave your children in a similar situation. You can reinforce what your children learn at school about finance and savings with practical examples at home and in a language that they can understand.

If you think that the children are too young to understand these things, I would respond with a big no, for several reasons.  First, children do understand money and its value even starting at a very young age. Second, with these lessons they will start becoming financially aware, and will be to manage their money. With Dashain and Tihar in sight, you can try one of these lessons and see how the children take it.

  1. Get them a piggybank or khutruki

A piggybank is a simple and fun way of teaching kids about saving. The goal is to fill the piggybank until there is no space in it. Challenge your children to save a designated amount every three months, and if they succeed they get a bonus.

  1. Save with a timeline

Children learn a lot but are usually unable to retain what they learnt for a long time. So, you need to constantly remind them the concept of saving. Post a chart paper onto which you sketch a timeline mapping the journey of their savings. Starting with Rs.0 and end with the desired amount, say Rs.1000. Set milestones and reward them when they reach it to create excitement and to further encourage them.

  1. Bank Accounts

Banks have attractive account opening offers for children. Open up a bank account for your children and deposit the first installment yourself or match your contribution with what they have saved in their piggybanks. This creates an opportunity for your children to learn about interest and how saving increases with time.