Parents, do you teach your kids about money? Starting your kids off with a foundation in financial literacy is essential – and it’s easier than you might think! In fact, we as parents can incorporate this into our families’ everyday lives.
Here are some ways we can turn day-to-day activities into money lessons for both young kids and school-going children:
1. Saving and Budgeting – Sending the Right Message
Talk, talk and talk. Be thoughtful about how you talk to kids about money, though. As parents, we want them to understand that money is not an infinite source, and that thoughtful money choices and decisions can lead to good outcomes.
Example:
Instead of saying “You can’t have those shoes because we can’t afford them”, you can say “We wish to put our savings first. Right now it’s best we choose not to spend it on this.”
You could also involve your child in the process of planning and budgeting for the family. For example, if you’re considering purchasing a new car, have a discussion together as a family about the one-off costs and the ongoing costs for petrol, car insurance, maintenance, and so on.
2. Teach them why and how we should save money
Teaching young kids to save money helps them develop strong financial habits early in life. Understanding the concept of saving empowers children to make better decisions about spending and prioritising needs over wants.
Try this with young kids:
- Use simple language to explain – “We need to put aside some money each month from now on.”
- Use visual aids, such as clear jars with labels for ‘spending’, ‘saving’ and ‘giving’, so they can visualise the growing amounts of money.
- Let them actively decide how much they wish to save, and put their money into the jar.
- Set a small goal to save towards; for example, a new toy or a gift for a friend.
- With the tradition of children receiving ang pows and duit Raya being prevalent in Malaysia, it is timely that during these festive seasons, we teach our kids how to save. A great way is to open an individual savings account for them and get them involved in making deposits and enjoying the benefits too.
3. Set up your child’s savings account – in under 10 minutes!
Most of us busy parents are looking for ways to get things done at a quicker pace. Without lugging your kids anywhere, without driving through any traffic and without wasting time in queues, you’re now able to set up a savings account for your child via the Maybank MAE app from the comfort of your home!
Maybank – Malaysia’s leading bank, is making it super convenient for busy, modern-day parents to instil in their children the habit of saving money – from newborns to children below the age of 18, for just RM1 with the Maybank Yippie/-i Savings Account.
With attractive profit rates of up to 2.30% p.a. offered, every cent saved grows substantially over time, promoting the habit of saving and encouraging financial responsibility from a tender age.
Here are the quick steps required:
Step 1: Open the MAE app and click ‘Apply’ on the bottom of the homepage.
Step 2: Select ‘Yippie or Yippie-i Savings Account’ and click ‘Apply Now’.
Step 3: After clicking, you’ll notice that your information (as a parent) will be automatically filled in. Verify if all the information is correct.
Step 4: Enter your child’s information, take a picture of their original birth certificate, and submit it.
Step 5: Check all the information to see if it’s correct and tap on ‘Confirm’.
Step 6: Transfer a minimum of RM1 to your child’s Yippie/-i Savings Account and approve the transaction through Secure2u to activate the account.
Step 7: After successfully applying, you can manage, track, and personalise the Yippie/-i Savings Account using the Junior feature on the MAE app. Check out the tutorial below for a visual guide.
On the MAE app, parents can easily manage all linked Yippie/-i Savings Accounts where they can top up their child’s accounts, set up recurring savings plans, view transactions, download statements, and personalise the dashboard by assigning a nickname to each account. Plus, you can also utilise other handy elements of the app, such as its ‘Tabung’ feature, which helps to encourage good saving habits, or ‘Sama-Sama Lokal’, which lists out interesting venues and activities, ranging from hiking spots to historical sites.
4. Saving for the Unexpected
Teach your kids that saving isn’t just about having extra money for amazing family vacations, investments, staying out of debt, or achieving your dreams. For many, it’s also about creating a safety net for life’s unexpected challenges.
Engaging in (age-appropriate) conversations with your kids about real-life events, such as death, illness, or other situations that may necessitate the use of emergency monies, is vital. These important discussions help to drive home the importance of saving, or setting up an emergency fund, for those ‘rainy day’ scenarios.
With the Yippie/-i Savings Account, both parents and children are also entitled to Free Personal Accident (PA) Takaful coverage of up to RM100,000, including additional amounts allocated to cover medical and funeral expenses.
5. Reward Them for Saving
Kids need to stay motivated when saving and parents can play a small part in hyping them up and ensuring they don’t give up (and give in to spending!).
Try this with young kids:
- Parents can match a portion of their kids’ savings as a reward for reaching their goals, reinforcing the value of saving.
- Offering small, non-monetary rewards, such as a special outing or extra playtime, can motivate kids to save consistently.
- Recognising their efforts with praise and encouragement can make kids feel proud and encouraged to save even more.
The motivation for saving with a Yippie/-i Savings Account also goes beyond its attractive interest rates – the Account’s Academic Cash Reward programme provides monetary incentives for students who achieve academic excellence in their SPM, STPM, A-Levels or University Degrees.
Teaching your children about money at any age and stage of the game will take time and intention on your part. And it won’t always be easy. But if you want your children to manage their money responsibly, taking the time now (and keeping them motivated) will be worth it. Good luck, parents!
This is a sponsored post by Maybank.
For existing Malaysian Maybank customers, the process of opening a Yippie/-i Savings Account for their Malaysian child is quick, seamless, convenient and fuss-free. All parents need is a child’s original birth certificate and less than 10 minutes! Sign up your child now to enjoy up to 2.30% p.a. profit rate, cash rewards for academic excellence, Free Personal Accident (PA) Takaful coverage of up to RM100,000 for you and your child, and more.
Non-Maybank customers need only to apply for a savings account via the MAE app, before applying for the Yippie/-i Savings Account. Did you know you could use the MAE app to view lists of exciting activities and experiences around you, access a food wheel to help you decide where to eat, and even buy movie, train, bus or flight tickets for the family!
