benefits of saving for parents

7 Benefits of Saving for Parents

Since childhood, we are often asked by our parents to save for a bright future. We also do not miss to always teach our children to save. However, sometimes as parents, we also often forget that it is not only children who need to save, we also need to set aside money from time to time. Well, for those of you who don't have an idea about the benefits of saving for parents, consider the following seven benefits of saving!

Also Read: Allowance for High School Children and How to Determine It

7 Benefits of Saving for Parents

1. Understanding Financial Concepts

The first benefit of saving for parents is that parents understand financial concepts. Sometimes, as parents, we always ask our children to save money and set aside money for savings without understanding how to have a good financial concept.

According to the direction of many experts, you can try setting aside income for savings using the 40-30-30 formula. That way, you can start paying attention to your expenses, savings, and investments in more detail.

2. Save money

The next benefit is that you can live more frugally. When you start setting aside money to save, automatically the money you can use for your desires will decrease by itself.

Therefore, as long as you stay disciplined in saving, you will not have the opportunity to waste money or follow your consumptive behavior and can be a good example for the baby.

3. Appreciate Money

It's not just children who need to be taught how to value money. We as parents often spend money to buy things that are not essential under the guise of 'self-reward' which need to learn more about how to value money.

Not that giving gifts to yourself is not allowed, but of course there are limitations that must be followed. By saving, you can better appreciate the money you have worked so hard to earn. You will think more about what your expenses are, what is needed, and whether the item you want to buy is worth buying.

Also Read: Snack Money for Middle School Children? How to Set It Up?

4. Avoiding Debt

One of the benefits of saving is that we avoid debt. Sometimes, debt can arise when we do not have the readiness to save and experience an emergency that requires a lot of money.

By saving you can minimize this. In addition, saving can also help you to have enough money to buy the things you want such as motorbikes, cars, or houses without having to pay them in installments.

5. For Emergency Fund

The Importance of Financial Applications

Emergency funds are funds that are prepared for emergencies. As a parent, having an emergency fund is a wise thing to do. Sudden unforeseen needs can use this emergency fund so it doesn't interfere with your family's monthly savings or budget.

This is also one of the benefits of saving, so that at any time you can use the funds if you are in a pinch.

6. Preparing Children's Future

As parents, it is only natural that we want a bright future for our children. Starting from the needs of clothing, food, their adequate housing. health insurance. education to the highest level, and of course entertainment.

By saving, you can slowly accumulate money to fulfill all these needs and wants. Therefore, saving is needed so that the future of our children is more secure.

7. Preparing for Old Age

As parents of course we have an obligation to prepare for the future for our children, however, it is undeniable that our bodies are getting weaker and weaker. Therefore, we need to prepare for the day when we are no longer productive. This is done so that later we have sufficient preparation and do not burden other family members.

Well, after reading 7 benefits of saving for parents, I hope you become more confident and enthusiastic about saving, OK!

As previously mentioned, financial literacy for children is a very important aspect to be taught to children. You can use the Whiz app to help manage your finances and teach your kids to save.