A penny saved is penny earned is what we were told by our parents. But then those were simpler days, we used to get pocket money on a monthly basis, we had piggy banks to put gift money received from relatives. It was hard cash that we used for spending, this to some extent was a deterrent, as it was not easy to part with cash. But now all that has changed, we have moved to an almost cashless system with debit cards, digital wallets and more. Of course there are benefits, but parents and children need to be aware that digital money is almost invisible, whilst it’s easy to transact, it is easier to spend! Plus all the attractive deals on the various online platforms make it even more difficult to resist.
Knowingly or unknowingly we end up spending much more than we ever did, moreover we are spending on stuff that we don’t necessarily need. So it’s more important now than ever before to teach our children to value money, to think before spending, basically to be money wise.
Here are some simple tips that they need to know before they are given money to handle on their own.
- All days are not same. Save for a rainy day. When you don’t work, savings will work for you. So don’t go all out and spend all of it. Understand the importance of saving.
- Don’t buy things you can’t afford, just to impress people, it’s not worth it.
- If you buy things you don’t need, soon you will have to sell things you need. Understand the difference between things you need and things you want. Buy wisely.
- A bargain isn’t a bargain unless it’s something you need.
- Have a budget for every month. A budget is telling your money where to go instead of wondering where it went. So . When you create a basic budget and stick to it, it will suddenly seem like you have more money.
- Do not save what is left after spending, but spend what is left after saving. Timeless and priceless quote, said by one of the richest person in this world.
- Every little bit counts, so rather than looking for one big way to save a ton of money, save in lots of small ways and set yourself up for success. Buying what you need during sale, buying a travel pass rather than daily ticket, using share cabs, or car pool, every small step helps.
- Recycle, Upcycle, reuse your clothes, bags, shoes, and other things.
- Do not share your debit card details with anyone. Lock your digital wallets app on your phone at any given point time to avoid getting misused.
- Avoid credit card usage as far as possible. And if you do use it, ensure that you pay it on time. Banks are not trying to help you by offering credit. They are selling a product. That’s how they make money.
Remember that rich people stay rich by living like they’re broke, broke people stay broke by living like they’re rich. When I say “I’m broke”, I don’t mean I don’t have money, it means I have other priorities to take care of, before wasting money on dumb stuff.
So basically, Buy less, choose well, make it last.
Its not difficult, needs a bit of self discipline and awareness.