Anyone with a kid will tell you that it is not easy to take care of a child. Children have so many needs ranging from medication, to schooling, to access to all the social needs and amenities. They say having a kid is a blessing but it is more to those who are prepared.
It should not be painful to take care of your kid. Times are hard but it is good to be tough and face them. Analysts and experts have said over the years that savings are the only way that a good parent can prepare to take care of their kids’ future.
Savings is something that one does from time to time until it becomes part of them. Savings are first considered an activity, then it becomes a hobby, and then with time, it develops into a habit, and within no time, it becomes a culture.
Savings should not hurt. They say one should save until one feels the pain but that should not be the case. Savings should be something that you enjoy doing, something that you will always look forward to, as well as encouraging others to do the same.
When it comes to instilling financial discipline among your kids, the best way is to teach them how to save. Tell your kids how valuable money is and how it is unwise to waste it. Tell them to always value, protect and save money, then show them how to do it.
Why should you teach and help your kids to save?
Saving Helps Kids become Independent.
Saving early will help kids to learn to rely on themselves to get what they want. At the same time, your kids will be able to benefit from a long time horizon for meeting important financial goals. This will encourage kids to work smart to get what they want.
They can take advantage of compound interest
Compound interest essentially means that your money can make money. If your kid deposits some funds into their accounts, the amount of interest they make will increase every year. That’s because they will start to earn interest on their interest. The money will have multiplied into greater sums by the time they get to their 30s or 40s meaning your kids will never lack food on the table even if they decide not to work.
They will Develop a Better Plan for Emergencies
If kids can depend on themselves when life goes sideways, it can instill confidence that they will be able to handle future surprises. Starting the habit of saving can help insulate kids against job loss or appliance breakdowns when they’re older.
Staying out of Debts
Discipline and self-control can be difficult for anyone, especially when it comes to money. The fact is, we won’t always be able to afford the things we want right away—at least not without going into debt. But kids who learn self-control are less likely to have credit problems later in life.
Peace of mind
Your kids will not be worried about any future financial crisis because their money is already working for them. The best part is that at this point they won’t be a bother to you since they will have a sense of financial freedom. Their money will have the chance to grow, meaning that their income will be higher than it would otherwise have been.
Understanding Unexpected Market Events
If your kids have enough savings it means they will be able to conquer market downturns. Additionally, saving smaller amounts over longer periods allows you to balance the highs and lows of the market by buying units at consistent intervals, rather than going all in when prices may be high.
Once you have socked enough money, the next thing you would probably think of is stepping out of that company and living your best life. Your children will have saved enough and won’t have to wait until they get to a certain age to retire from their job once they are sure the plan will sustain them for the rest of the years.
The Process will be More Easier
Saving shouldn’t be a painful process and that’s why it’s good to start early. This will allow you to save as little as you can and the money will have multiplied by the time the kids mature. Kids also have fewer expenses and this will make them multiply their money faster.
Which bank should you go to and help your kid save?
Go to UBA Bank Kenya. The bank has a product called U-Care that helps you save for your kids as you earn interest of up to 3 percent annually. The product is such that you open an account for the little one but you are allowed to access and withdraw the cash quarterly.
The UBA U-Care account has the following features:
- Opening and a minimum balance of 1,000 shillings
- One withdrawal per quarter
- Interest on credit balance
- Mobile and internet banking options are available
- Monthly interests are forfeited after three withdrawals in the quarter.
When you open a UBA U-Care account for your kid, you get the following benefits:
- You get access to competitive interests earned
- You will have easy access to products such as mobile and internet banking, loans, and remittances
What are the requirements for you to have a UBA U-Care account for your kid?
- You need 2 passport-size photographs of a parent/guardian and that of the account holder.
- You need an original ID or Passport of the parent/guardian
- You will also need to present a dully filled and signed form.
Why should you save for your kid? You ask yourself this question. The future is always uncertain. We may know the present but what happens the next minute is hidden from us, human beings. All we do is prepare for the future.
Saving for your kid ensures that their future is well-taken care of. If you are saving for their school fees, as other parents will be running up and down, scratching their heads and beards, you will be smiling to the bank because you already guaranteed the future of your kid.