A number of parents have been lamenting to the IWRN about their inability to make proper and sustainable arrangements for their children financially, particularly at the end of their tenure at secondary school; most of them have admitted to having meagre disposable incomes that allow for daily survival. Because of their circumstances, there are large numbers of children with enormous potential who fall by the wayside and unfortunately become involved in illegal activities.
In this new dispensation of living, individuals in particular parents and caregivers, are forced to make deeper sacrifices and to also exercise greater levels of creativity and innovation to allow them to achieve the desired outcomes for their kids in spite of the challenges experienced coupled with their situations, may hinder them from accessing official means in obtaining educational loans or grants.
Finding simple, yet workable solutions to the situation described, is key if we are serious about securing our children’s future as they progress to young adulthood, and so, the IWRN team has been continuously advising parents to return to the age-old methods of savings, as inculcating a mindset of savings is critical for the survival of not only children but also their families; start with the purchase of a piggy-bank which is an extremely cheap savings device and encourage your child or children to save at least four quarters daily..if circumstances permit, strive for eight quarters.
The practice of savings requires lots of sacrifice which means deferring gratification for a period of your life, and focus only on the must-haves; adults should aim for a minimum savings of two dollars daily. Though it may appear to be miniscule in value, the total sum adds up at the end of each calendar year. A part of that total savings can also be allocated towards emergency situations such as illness.
Though budgeting on a modest disposable income can be nerve-wrecking, allocating a small portion towards future needs is considered a major familial achievement; create a list of your regular bills and expenses including mortgage and/or rent, utility bills, insurance, private lessons and entertainment, and determine from that list, what can be deferred to ensure that your savings’ goals can be accomplished; deferral may also mean altering meal preparation at times, perhaps preparing simple and nutritious meals or even preparing meals on the weekend for the entire week.
Buying on impulse should be avoided at all costs; if you see something that you absolutely need, still take some time to think about it; whilst it’s easy to get caught up in the excitement of new purchases, that excitement usually wears off over time. Instead of immediately pulling out your credit card whenever you spot a beautiful garment and/or item, make a note of the price and think about it for a while: Your deciding question would be is it a must-have or a nice-to-have?
Don’t increase your spending to meet your income which may be likely as there may be strong desires to increase your spending on unnecessary things particularly if there is money left over each month; always attempt to resist the temptation to spend more, and avoid allowing your expenses to creep. This requires making wise and necessary choices.
Discretionary income makes you happy and opens up unique opportunities to create a new budget and re-evaluate your savings’ capacity; once you find yourself with a growing net worth each month, determine how much you need to put aside to meet different financial targets.
Including your children in family conversations, plans, and decisions around expenses and savings, is an excellent way to help them to better understand both the family goals and their personal goals. When they’re involved, daily living becomes much easier as they are aware why acquiring some items must be deferred.
Once you embark on your savings’ drive, you must commit to it in the same way you would do for other goals. A household of four each saving two dollars daily over a fifteen-year period results in an accumulated family savings of $40,320 with the individual sum being $10,080. Though these sums may appear to be small, it is indeed a huge goal which can be an ideal start for your kid post-secondary school.
Adriana Sandrine Isaac-Rattan is President of the Int’l Women’s Resource Network/Communications Consultant
Email: intlwomensresourcenetwork@gmail.com