Bank Windhoek encourages saving culture

With less than a week to go to World Savings day on 31 October 2016, Bank Windhoek this week urged all Namibians to commemorate this special day by starting to save, saying teaching financial lessons can begin as early as preschool.“Research has shown the children have trouble imagining the far-off future. One way to address this is by starting with relatively short-term savings goals: The more distant or abstract the goal, the harder it is for children to visualise. Encourage children to work toward something tangible that’s on the not-too-distant horizon, like spending cash for a family vacation or an accessory that they have their eye on,” said Jacquiline Pack, Bank Windhoek’s Executive Officer: Marketing and Corporate Communication Services.“It’s also a good idea to teach children the difference between needs and wants. Most adults know that there are expenses you have to pay (your needs) and there’s discretionary stuff (your wants). Young children and teenagers may have a tougher time making that distinction.
You can explain that school supplies and a soccer uniform are needs, and movie tickets and designer jeans are wants. Teens may need to be told that when pressed for cash, it’s useful to prioritise their necessities so they’re never stuck without something that’s essential. A great way to help primary and secondary learners understand responsible spending and saving is to create a budget. You could encourage children to record all of their monthly earnings and expenses in a journal. In addition to recording what they bought and how much it cost, ask them to record why they decided to make the purchase.Branching out from your ordinary piggy bank is a good way to make children understand how banking works from an early age. By opening a savings account, such as Bank Windhoek’s Solo account for children under the age of 18, they will learn to think about how banking works,” says PackIn addition to helping protect their money, she said, a bank account offers a way to build their savings with interest. Watching the account grow can help drive home the importance of saving.“No matter what age you are, starting saving today, your future self will always thank you,” Pack concluded.