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Saving money starts in the classroom
Student savers: Elementary school students in Jakarta show a saving book
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Student savers:: Elementary school students in Jakarta show a saving book. The school encourages students to save at school through a small saving program. (Antara) (Antara)
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span class="inline inline-center">Student savers: Elementary school students in Jakarta show a saving book. The school encourages students to save at school through a small saving program. (Antara)
Parents have their own ways of teaching their children about financial management. Instilling a saving habit in kids is good for them, although it is challenging to do so.
Financial literacy is not really an appealing topic for adults, let alone for kids. However, amid growing consumerism and a shop-'til-you-drop habit among urbanites, the earlier we introduce the 'f' topic to our children, the better they will understand.
Unlike children of earlier generations, who barely had enough food to eat, today's youngsters encounter money at an early age. Aside from some less fortunate kids who are still suffering from malnutrition, most of our little ones enjoy quite a good life, thanks to a growing economy.
Children are indulged with various forms of gifts, food, toys and money from their lovely grandparents, aunties, uncles and of course mommy and daddy.
'My kid just turned five years old last month and he already has one room full of toys. Me and three of my siblings never had that many toys when we were kids,' said Tantri Mulyana, mother of Jibril.
'My son also regularly gets money from my parents on several occasions like birthdays, Idul Fitri and year-end holidays,' she added.
Despite his young age, Jibril, like many of his friends, already understands what money can buy. 'He will buy more toys or buy a lot of candies, even without my consent, from a small toy seller who regularly comes to our residence,' she said.
As a mother, Tantri was really concerned about his son's growing interest in toys and money.
Tantri considered that 5 years old was the appropriate age to introduce financial management. However, knowing that the matter was complicated and mostly useful for a long-term purpose, Tantri tried to keep it simple. 'In fact, I bought a robot-looking money box as his birthday present,' she said. 'I know it was not a fancy gift and he might not really like it, but I believe it is the simplest way to introduce saving to kids,' she said.
Tantri told Jibril that the money 'will grow' every time he drops a coin inside the box. Tantri, a freelance writer, told him one of her own childhood stories about having bought her first bicycle after saving every coin she had for one year.
'Of course it was not entirely true. My father paid most of the purchase price of my bicycle, but I was still very proud of collecting my own money,' she added. 'I want my kid to feel that pride.'
While Tantri focused on creating excitement for saving, Maulida Astarini did the opposite. A daughter of a successful salak (snake fruit) farmer from Yogyakarta, Rini, as she often called, had known the importance of financial management since she was little.
'I helped my mom manage the financing: where the money came from, how much money to pay the workers, how much more to pay the trucks carrying our fruit to town,' she recalled. 'From what I did when I was little, I knew that our money was always connected with the lives of many people. We should be really careful about that.'
Rini now runs her own business in batik fabrics and clothes and teaches her two children the same financial discipline. Her kids Tama, 12, and Ayu, 9, have their own bank accounts. Rini takes them to the bank to deposit money at least once a month. 'It does not matter if they can only save small amount of money. It is the consistency that matters,' she said.
According to Rini, children have to understand the value of money as something they should not play with. 'I tell my kids that saving gives us safety because we will never know what comes next. If something bad happens, we will be prepared,' she said.
Rini's long-term plan is to teach her children how to run their own businesses. But, as many parents say, when it comes to financial literacy for kids, we must aim high but shoot low. 'I hope my own life as a small entrepreneur will inspire them to open their own businesses that match their interests,' she said. For a short-term goal, Rini wants her kids to have good money habits: save, don't spend.
Good habits
It is not a hassle-free challenge, though.
'Kid stuff is so attractive and sometimes it comes at a reasonable price. But that is even more dangerous because we will not feel guilty of spending our small cash for those things,' she said. 'Only when we think about it carefully, then we will see that we buy too many things.'
Rini said that she readies some small gifts, or at least sweet compliments, if the kids save more. 'I want them to believe that good things will come to those who are wise with money,' she said.
Rini also teaches her children to keep a money diary that specifies for what and where the money goes. 'Based on my experience, it helps me manage my spending,' she said. She said that so far her children enjoy their financial management. 'They are happy to go to the bank. They feel like grown-up people who manage their own money,' she added.
Kurnianingsih, an elementary teacher who also manages a savings program around her neighborhood, said that kids will pick up the need for financial management mainly from their parents. 'I always tell my students' parents to demonstrate good habits. Kids will learn from them,' she said.
Kurnianingsih, a veteran teacher in South Jakarta in her late 40s, said that she always encouraged the students to save at school. 'For many years, I voluntarily held a small savings program for my students. They have their own saving book and give me the money for me to keep,' she said.
She returned the money at year's end. 'Today's kids have more pocket money. If they save half of it, the amount will be enough to buy good toys or books,' she said. From her long experience, Kurnianingsih said that parents must tell the truth when it comes to money. 'The best way is to tell them where the money comes from. Parents must work hard to get money and it should not be spent in reckless ways,' she said.
Kurnianingsih also reminds parents that they must be steadfast when facing their children's demands for the latest toys or expensive foods. 'Don't be intimidated by their demands. Stick to your purpose to teach the kids to save,' she said.
Kurnianingsih promoted delayed gratification instead, which is generally understood as the ability to resist the temptation for an immediate reward and wait for a later reward.
'That is the point of saving. The more we save, the more things we can buy in the future,' she said.
(Lutfi Rakhmawati)
