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Eid: a time for our family... and its future

Author
Baizat Team
Category
Budgeting and Saving
Tags
Saving, Budgeting, Tips, Debt, Risks
 

Eid presents a big opportunity to teach our children how to think and act wisely about their personal finance. It can also prove an early test or challenge for their capability to think, plan, and define their financial goals.

 

Think about your children

ُEid-Think-of-Children

Parents can be the best example for children to learn about personal finance, but by the same rule they can be a bad one – it is always important to remember the influence we have on our young ones.

By being aware and involving children in carefully managing the excess spending and gift-purchasing that occurs during this time of year; we can help teach them, and ourselves, the importance of personal financial responsibility.

 

Presents they receive

Sensible-Gifts

During Eid, children will be provided with lots of money and gifts from generous relations and friends. They will want to go out and spend the money as soon as possible on things like the latest toys, games and accessories.

Encourage relatives and friends to give money to children instead of physical gifts and teach them to be responsible with it (as well as doing it yourself). Even small Certificates of Deposit may be given, but ensure the child understands what they are getting and its importance.

Help them plan for what they want to buy, but make sure that there is spare left over for saving. With the spare cash, help them set up a saving account or give them a saving’s box where they can store their money for the future.

 

Involve children in planning and shopping during Eid

Involve-children-in-shopping-activities

During Eid we will have to deal with excess spending on food and gifts, regular trips to the supermarkets and malls will be very common. Many families will not plan for these occasions, even when they do, impulse buys will be made. Children may be witness to these trips and the spending involved – this can have a negative influence on their understanding of the importance of the money being spent.

When on Eid shopping trips, ensure that a shopping list is first drawn up – this includes planned gifts as well as food and necessaries. Sit down with the child and go through each item with them – as well as a planned cost and reason for each gift (who it is for and why they will like it). Then when you go on the trip, make sure to take the list and, with the child, go through each item and purchase only the items noted down. Be sure to reward them and thank them for helping you.

By learning to plan and then shop from a list, you are helping your children learn the basics of budgeting and avoiding the dangers of impulse buying.

 

Remember

Help-Your-Childrens-Future-During-Eid

What you teach your children now, will shape their future.

Children have a right to have fun and enjoy the occasion of Eid, it should always be an enjoyable experience first and foremost. But as parents; it is our duty to let them do it wisely and ensure they learn from it.

 

Other Tips and Ideas for a Memorable Eid

Ideas-for-Eid

As a family, decide to be unique with your gifts to friends and family during Eid. Only gift children something useful for their future (for example a Certificate of Deposit or Islamic Bonds). It doesn’t matter how big or small, the importance is that it will grow for them over time.

Run a small competition between children in the family to see who can plan a financial goal during Eid, the winner is the child who has put the best plan in place for achieving their goal – for example, buying a computer or a bicycle. They can put the plan together in a collage or similar attractive fun manner. This will help them understand how they can save for goals over time, especially if they use saving accounts and are patient with their money.

Find a way to reward and incentivize our children for saving their money instead of spending it on things like toys and games. For example we could give an extra Dirham to our children for each Dirham they put in a saving account.

 

Note for Parents

Stay-organised-during-Eid

Eid can be an instable period for many of us, especially considering that many of us get paid in advance before the occasion. In the next month this will leave us without pay for much longer than normal. Make sure you budget and plan in advance so you are not left out of pocket.

One example could be making a "Gift Plan Book”, where you note down all the people you plan to give gifts to, a budget and idea for each. Don’t go above your budget and make sure it stays within what you can afford.

Also be sure to shop around when buying large purchases, some shops will have good deals on for your favourite food during the occasion.

It is important you and your family are able to relax and enjoy this great time without worries of debt or excess spending.

Take care of your money and your money will take care of you.

Eid Mubarak from all of us at Baizat.

 

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