SAVERS OF TOMORROW
June 18 - 24, 2012
Holidays are around the corner and the parents are all looking forward to their children being back for few months before the new term starts.
However, apart from food, entertainment and trips, parents ought to consider the well-being of their children as well. This consideration includes their children's health, parental care, morals and discipline. The subject of discipline is a key to note because not only does it engage cautiousness but financial discipline and diligence as well.
As the festive season closes in, there is a tendency of opening the financial taps so that they flow to please children. The greater influence of electronic media, films and music videos have instilled consumerism in children today. Parents naturally want the best for their children but they should do so wisely.
Parents should explain the benefits of saving. This will prevent children from dashing to the shops for toys, sweets and chips. It is never too early to begin teaching children about financial responsibility. According to a research by Schroders, 40% of European investors say the most important piece of financial advice they would give their children would be that they should start saving as soon as possible. Fred Ssewamala, a Senior Research Fellow with New America Foundation, involved in designing projects for poverty alleviation, says: "Children's brains are like sponges; it's easier to teach them when they are young rather than leaving them to figure it out as adults."
Knowing the importance of the saving culture in children, CEO of National Bonds Corporation, Mohammed Qasim Al Ali, came up with a distinctive idea recently. He replaced his kid's birthday gifts and other family events by opening a national bond account for them and adding money in the accounts as a gift.
His efforts was met with deep appreciation of the children, in spite of objection at first, but they began to accept the idea gradually, especially after he ballooned their investment portfolio over the years, and now his oldest son is now able to handle his own account after crossing the minor age requirement.
What motivated Mr. Al Ali to do this behavior with his children is his quest to be an example to other Fathers, especially in conjunction with him being the CEO of the company, which its main function is to provide customers with savings scheme that suits all different income levels and age.