Chantal Baker is the director and founder of Champ Consultants. We are accountants and tax consultants based in Caterham. We are looking forward to providing you with business and finance tips as well as answering your questions.
Question:
How can I teach my children to learn to save?
Answer:
With the impact of Covid-19, a lot of people have had to dip into savings to survive. However, many have no savings at all. Teaching our children to save from a young age is crucial. This can be made easier by teaching them the principal of having a 3-tier savings account. You can explain it to them as follows:
Account 1
This account is for the everyday things, such as going to the cinema with friends, sweets or PlayStation games. Things that you buy or do on a regular basis.Account 2
This is for bigger things that you'd like to buy relatively soon. like a new phone, or console.Account 3
This is the account for more ambitious items, that will take a while to save up for. (Maybe driving lessons or a car itself?)
When you receive money, it is good to separate it into the different accounts straight away, to help you save. For example:you get £20 pocket money. Put 20% (£4) in account 1, 30% (£6) in account 2 and 50% (£10) in account 3.
Having visible pictures of what you want to save up for is an incentive to save more. You can always swap the photos for others if what you want to buy changes!
Send us your financial questions via the Contact Us page of our website.
Chantal Baker is the director and founder of Champ Consultants, accountants and tax consultants based in Caterham. We are looking forward to providing you with business and finance tips, as well as answering your questions.
