With the impact of COVID19, many people have had to dip into savings to survive and many have had no savings at all. Teaching our children from a young age to save is crucial. It is good to explain the principle of having a 3-tier savings account.
This account is for the everyday things you may want to buy, going to the cinema with friends, sweets, PlayStation or Xbox games. Things that you buy or do on a regular basis.
This is for the thing that you want to save up for and buy. Maybe the next PlayStation or Xbox console. Sometimes it is a good idea to have a photo on your door to remind you of what you want to buy and what you are saving up for. Buying that item is then very rewarding.
This is the account for the big item that will take a while to save up for. Maybe a car.
When you receive money, it is good to separate it into the different accounts straight away and it will help you save. An example would be, if you get £20 pocket money, put 20% (£4) in account 1, 30% (£6) in account 2 and 50% (£10) in account 3.
Hope you all have fun setting up these different accounts and in saving too. Having photos of what you want to save up for will encourage you to save more. You can always change the photos.
Please always seek professional advice before taking any action. We are happy to answer questions in future issues. Please send your questions through the contact us page on our website: www.champconsultants.co.uk
Please do follow us on the various social media channels.