How much should I save
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Josephine Hey Annette! You look so happy. What's happening?
Annette Well, Josephine, the other day I visited Myriam at her shop and I asked her what was the best thing she did for Lily when she was a child.
Josephine What did she tell you?
Annette She said that it was saving money every week so that Lily could to go to school when she grew up.
Josephine Tsst, Myriam she always knows what to do with her money. So? Why are you so happy?
Annette I am happy because, I was able to open a savings account for my daughter, and it is so convenient because every week I can put a little bit of money in it using my mobile phone.
Josephine That is great, Annette. Tell me more!
Annette To start, I will put 10 francs every week. This will help create a nice pot of money for my daughter: 10 francs a week is 40 francs every month, and 480 francs a year. When she is 18 she will have almost 10,000 francs, including the interest that grows with the sum I set aside for her. And whatever monies she can also add too, monies she receives from parents for her birthday, her communion, and so on ... the trick is to start early and do it regularly.
Josephine I see! So you are saying that saving regularly can make a big difference for your daughter! I shall do the same for my children.
Annette Yes! it does, But I also have an emergency savings account.
Josephine Oh that is smart!
Annette Josephine, you can easily save for emergencies too! You are doing so well selling your vegetables!
Josephine Oh Annette! I am going to follow your example! and start saving for emergencies too! But what if I want to buy, say, a new fridge? Can I use my emergency saving?
Annette No Josephine! A fridge is not an emergency! Imagine if your husband was hurt and he couldn't work but had expensive medical bills. That is the type of emergency to think about. For the fridge, make a plan: consider the full cost and when you want to buy it to determine how much you will need to save each week.
Josephine Oh this is complicated!
Annette It's not so complicated! Set an amount that will be easy for you to save every week. I save a set amount for my daughter, for emergencies and for big expenses in my savings account. I save before I spend. And when I start earning more, I will save more.
Josephine I think I understand: I need to always save for emergencies, a set amount every week, and then if I want to buy something special, I make a plan. So from now on I will save for my children, for emergencies and for future expenses.
Annette Great plan, Josephine ! And remember, you can do all that using your phone, regularly, so you are not tempted to spend your money!
Josephine Thank you, Annette! Together we can keep our savings goals!