Teach your kids to be a savvy saver
It’s never too early to teach your children the value of saving. Saving and budgeting even modest amounts teaches them important lessons about making good financial choices – lessons that will stand them in good stead for all of their lives.
Find our S.A.V.E.R tips below:
S is for 'Set a good example': Do you save? The most effective way to teach your child any good habit is for them to see you doing it, and saving is no exception. If you’ve told them about all the positive benefits of saving, but you don’t do it yourself, it’s unlikely they will either.
A is 'Always involve your child in saving': Make your children realise that saving is ‘normal’ by including them when you’re banking. Whether you’re depositing money (online, at the branch or by post), checking your balance, or planning to save for a big goal, bring them along in the experience.
V is for 'Value every penny': Understandably, your child is going to start with modest savings, but help them to understand that every penny counts when saving towards something you really want. A good idea to keep children focussed is a savings jar where they can literally see their money growing. Help them to pick a realistic goal though, if they’re saving for what feels like forever and they’re no nearer their goal, you may put them off saving completely!
E is for 'Enjoy it!': You could open a Young Person's Notice Savings Account for any children under £16 with £20. Your child can enjoy watching their savings grow and when they reach 14 years of age, they may have access to withdraw funds from their account, subject to special conditions.
R is for 'Reward good habits': rewards can really help to reinforce the routine of saving and encourage your child to stick to it. If you are able to reward your little saver, decide what works for you – could you perhaps find some extra chores to help boost their savings? Or perhaps ‘match’ a portion of their savings?
It’s never too early, or too late, to start saving. If you would like to talk to someone about Al Rayan Bank’s comprehensive range of Sharia compliant savings accounts – which offer the best rates of return in the UK – please ring our Customer Services team on 0800 408 6407.