World Savings Day: Why teaching children financial responsibility is essential

As Rwanda joins the world to mark World Savings Day on October 31, it is crucial to note that teaching children the value of money, and the importance of saving in this consumer-driven world, has become more necessary than ever. Therefore, it is crucial to instil a saving culture among children, as emphasised by parents and financial experts. ALSO READ: World Savings day: Rwanda seeks to save 23% of GDP for 2023/24 Eddy Robert, a business coach, shared: “The future requires preparation, and opportunities come to those who are most prepared. We all encounter opportunities, but it is the most prepared individuals who truly benefit from them.” “There are numerous opportunities that have not yet been fully explored, such as the unfolding of AI and many other emerging developments. This implies that those who have the resources to explore these possibilities will be the ones to benefit,” he said. He added: “Encouraging our children to save can be a significant step in ensuring that they are prepared to seize any opportunities that may arise in the future, and will be equipped to explore them on the spot.” Robert argued that saving is not solely determined by the amount of money one accumulates, but rather by the decisions made regarding that money. Saving is a consistent practice that serves as a fundamental principle in life. “Whatever you invest your time in, you become good at it.” He mentioned that the act is not about keeping the number high, but rather on the narratives one tells oneself regarding the consistency achieved. “Whatever the amount you keep, it tells you how you are disciplined and this transcends the financial aspect of things, thus affecting other areas of life. “The consistency in being able to save can be applied in studies, career, and whatever endeavour you want to pursue. So, you can see how saving money can transcend into making you an even better person in other endeavours.” ALSO READ: Ejo Heza savings: Your child can retire as a ‘millionaire’ – RSSB Robert believes that children learn by observation. “Parents need to change their lifestyles because what matters is not what they teach children but what they do. He also encouraged adults to adopt a culture where they not only celebrate spending, but also celebrate saving. This is because whenever you save, you elevate yourself in a certain way. He added, “It's a shame that we can celebrate someone who buys a new car or whatever, but it's very rare that we truly appreciate someone who embarks on a journey towards saving. Let us normalize that culture and not find it strange to have money and choose not to spend it.” ALSO READ: Why domestic savings remain low in Rwanda Mike Urinzwenimana, a media consultant and father of three, shares similar insights — the benefits of raising children with a strong savings mind-set are significant. “The world has undergone numerous changes, notably, the lessons learned from the Covid-19 pandemic. People have become more mindful of the importance of saving for the future, particularly since the pandemic. “Instilling the virtue of saving in a child can shape their mind-set to view money as something to be preserved for the future, rather than spent immediately in simple terms,” he said. He noted: “Nowadays, children are exposed to many sources of information like phones, TV, and movies, but sometimes they might not fully understand financial responsibility until later on. However, when parents make it easy for kids to learn about saving, it helps children grasp the concept better.” “Saving money today is different from previous years. People now use technology, invest in assets, and employ various strategies to save. Parents should lead by example; it’s easier for children to learn and follow suit,” he said.

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World Savings Day: Why teaching children financial responsibility is essential