Strategic saving: A piece of cake?

Every year, the credit agency Creditreform publishes the Debtor Atlas Germany. The 2020 edition also takes a worried look at the situation of children. Of the almost 1.7 million people, for example, who use the services of the food banks in Germany, almost a third are children and young people, i.e. a total of around half a million.

Working out a savings plan is not always easy for us adults, but sticking to it is even more of a challenge. And if we “grown-ups” often fail at strategy and discipline when it comes to saving, how will our children learn?

They enviably live in the here and now and are not on the imaginary finish line of an abstract savings plan. So it is all the more important to make strategic saving child’s play.

Set short-term goals

Saving can become a fun and learning factor if it is naturally integrated into contemporary financial education. In this respect, the topic of strategic saving should also be about the joy of the challenge and the achievement of a goal. It is therefore advisable to set savings goals very close to the present and in close relation to the child’s reality.

Let’s just take the example of a holiday that is coming up soon. Add to this a small portion of strategic imagination and the savings goal can be targeted. Children look forward to a holiday just as we adults long for time off in a new environment. An environment where there are completely different and much more adventurous things and toys. And magically, “child” can only buy these with the money he or she saves before the holiday.

So let’s awaken the anticipation of the holiday and shorten the saving time by, for example:

  • making a holiday savings calendar together, in which we put some of the savings every day.
  • Painting the holiday piggy bank in a colourful way, for example in the national colours of the holiday destination or with a funny headdress typical of the country.
  • tell each other what great things await us on holiday and how the moment will feel when the exotic toy or the very special ice cream is finally paid for with the special savings.
  • draw a picture of what this magical toy looks like.
  • imagine how the savings here will magically turn into holiday magic money once we get there.

Saving means renouncing

Why it is so important to bring the holiday savings goal to life as often and as vividly as possible becomes clearer when we consider, in practical terms, the villain adversary to saving: the impulse to spend. After all, this “villain” has many allies: Temptations at children’s eye level, online offers, advertising everywhere. So how can we stand up to the nasty financial devourer? The best way is to draw a vivid picture of what awaits us as a family on holiday and thus regularly get us in the holiday and savings mood. This strengthens the will to persevere in saving and gradually makes the temptations of impulsive consumption fade away.

So when we tell ourselves how it feels to ride the merry-go-round or the roller coaster, which of course can only be ridden and paid for at the holiday destination and only with coins put aside here, nasty financial devourers no longer stand a chance.

In short, let’s make saving an adventure and thus turn our children into financial heroes who oppose the spendthrift creep with strength and strategy.

Finny demonstrates strategic saving

With our mobile banking app for children between the ages of 7 and 12, children can not only visualise their savings goals with their own individual pictures, but also share them with mum, dad, grandma, grandpa and other relatives and friends. This brings the savings goal closer more quickly and increases the motivation to continue saving. In addition, children can see at any time how much money is still missing to reach their savings goal.

Every challenge they take on (and win) and every extra task they complete brings them a step closer to their savings goal – in a very strategic way and with a great fun factor.

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