Some people believe that students are too young to save. However, it is said that this is the best time to set them on the path to successful financial management. It is believed that during this time, young people learn the specifics of good financial running. John Nzayisenga, Director of Kigali Harvest School, says at a certain point in a student’s life, most of them will manage some money, either allowance or income from a job, especially those in high school. One excellent personal finance book for kids suggests that children can and should have savings goals and even retirement accounts. It states that youngsters as little as five or six should set savings goals. Then give them a small allowance, and watch as they learn to make tough choices. Nzayisenga notes that one of the biggest steps towards leading an independent life is financial liberation. He says this means that students should be able to take control of the little money they have, adding that they don’t need a lot of money to be independent. Some research shows that by the age of 12, children will have developed economic understanding, capable of taking all money-related decisions. For this reason, Faustin Mutabazi, a parent and the chief executive officer at Educational Consultancy Bureau, says it’s the responsibility of parents to develop smart money management skills in children, especially when they are in their teenage years. “Instilling in young people money management skills will have a huge impact not only on their career but also their social status,” he says. These skills, he says, impact student ability to make important financial decisions. In most cases in schools and even at home, learners are not taught how to save money, which leads to many teenagers spending the little they have on food, Mutabazi says. Nzayisenga says schools are the ideal place to foster such skills. For instance, if possible, he says, embedding financial literacy programmes in the curriculum will help them make financial decisions. The importance In the long run, Nzayisenga says, it will help develop entrepreneurship and management skills at an early stage. Also, he says, the skill of managing money helps learners develop good habits, increases emotional intelligence and most importantly, makes them mentally strong and reduces the financial burden of parents to some extent. Diana Nawatti, the head teacher and counsellor at Mother Mary Complex School, Kigali, says money management is a skill that learners can carry on throughout their life and, that the money management habits they developed while in school are likely to stay with them forever. Ways students can earn money Jane Nakaayi, the head of the department of languages at Riviera High School, says first of all, students can be involved in family businesses. Here, she explains that they can be employed by parents or other relatives. She says they can be paid alongside workers, and save or use it to buy necessary items if there is need to. Another way is for students to save the ‘pocket money’ given to them by their parents. She adds that depending on how much they are given or earn, they can use half and save half of it. Those from underprivileged backgrounds where they hardly get money, Nakaayi says can look for work in different places, especially during school holidays. If they have land, she says, they can use it as an opportunity to earn small money through cultivating and growing crops such as vegetables or fruits. “In this era where the Internet has taken up everything, students can use it to advertise their businesses, which can help reach out to many people,” she says. When it comes to spending, Nawatti says students should learn to spend only on what is essential. “They should avoid luxuries, like some students who decide not to eat food from the school and end up spending money buying it elsewhere,” she says. Nakaayi points out that some students at the end of every term tend to misuse or even throw away their belongings, knowing that the next term, their parents will buy new stuff. She says this is wrong and should be avoided. Instead, she says, keeping them is important because it will help save the money that would have been used to buy the same stuff.
