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So grandma got out an exam pad and a pen. She began to write, “Thandeka’s Savings Plan” !!!
She then went on to explain how it all works. Your savings plan needs to be as detailed as possible, said grandma. Every single rand you add into your savings should be written down, and then every month end you can record the total value you have saved so far.
This will help you keep track of the money coming in and show you how close you are getting to your target. Grandma explained some more: break down the total value you need into months to make it a more realistic target to achieve. Make sure you don’t mix it up with ordinary money you need every week to buy things that are needed. like bus fare or lunch. If you keep these together, they will confuse your savings balance.
“So where do I actually keep my money I am saving?” asks Thandeka. Grandma went into the kitchen and brought back an old pasta jar. “Here”, says grandma, “start putting your money in here until you have a safer option.”
You can ask your parents for a piggy bank, or even use an envelope that can be kept in a safe if they have one. Otherwise, the safer option would be to open up a junior bank account that only you and your parents will have access to. Then every month you can deposit cash and you can check your balance with a statement.
“Make sure you are keeping track every month so that you can see how close you are to reaching your goal as you save more and more”, said grandma. Whilst you are saving up, always look out for specials or 2nd hand items that might make your goal cheaper.
Over the next few months, Thandeka made really great progress in reaching her target. Every month she was adding in money to her savings account from chores she was doing for her parents, and even some for her grandma when she could help.
She was really close to getting to her target goal but had a bad month over December, when she used half of her saved money to go watch movies with her friends.
She was really sad afterwards to have this setback, but her grandma reminded her to adjust her savings plan, and simply start again as she had done so well so far.
Continue with your lesson to find out what happens with Thandeka…
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