Saving is necessary to be financially healthy but also to remain financially strong in the long term. And it is essential to start saving as early as possible. Because regardless of our age, every time we receive money we should save a part of it, no matter how small it is.
However, finding the motivation to save money once in a while is extremely difficult, especially for children and teenagers whose priorities are probably different from putting some of their pocket money aside.
Understanding money – how we use it, how we can get more, how easily we can spend it all – is a knowledge essential to every child’s development. There are many ways to teach our children to save money, but the effectiveness of most is rather questionable.
At Woli when we talk about savings we think about more than a piggy bank where children put the coins left over from their allowance. We think of a way that is taken from the everyday life of adults and that teaches children what saving is and how we accumulate money to achieve the goals we set.
That’s why we created Woli Money Goals, the new educational feature of the Woli app that teaches children not only to save but also to earn from the interest rate.
The Woli app “Money Goals” not only teaches children how to save but also how they can be rewarded by interest rate – and patience too. Through the Woli app, parents set the Goal Reward they want to pay into their children’s savings. The higher the Goal Reward, the easier it will be for children to understand the importance of interest in growing their money.
How does it work:
- Through his account in the Woli app, the child creates a goal, for example to buy a bicycle when the school year ends. At the same time, he sets the amount he wants to raise to buy the bike, for example 100 euro.
- After creating his goal, the child sends a request to his guardian’s Woli account to set the “Goal Reward” he wishes to be applied to the amount of the child’s savings goals.
- At the end of each month, the amount resulting from multiplying the child’s monthly goals by the Goal Reward set by the guardian is automatically transferred from the guardian’s Woli account to the child’s Woli account.
Woli’s “Money Goals” feature teaches children the concept of interest rate and how it pays off over time, but also the importance of patience and proper planning. The latest video game that came out a few days ago is super cool and they definitely want to buy it, but they will realize that if they wait a little longer they will have more money at their disposal to buy not only the video game but also a meal with their friends.
The everyday decisions we make about our finances can have a significant impact on our lives. With the Woli app and the Money Goals feature, children and teenagers have the freedom and flexibility to realize their goals and develop good personal finance habits!