Practice these Tips of The Habit of Saving Money

October 24, 2022

Last Updated Date: October 25, 2022

Habit of Saving Money — Graphics Credit: Editorialge.com

The practice of saving has been forgotten, and much of this is due to materialism and the current market, which have excluded the saving lifestyle.

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This is how Mara Esther Aguirre Lora, an expert from the UNAM Research Institute on University and Education, cautions, emphasizing the importance of rescuing financial resources, a habit that originates in the cultural and social context.

“Early understanding on the subject has disappeared, and training institutions have eliminated teaching on the subject,” stated the expert at a UNAM Faculty of Philosophy and Letters seminar.

“It is vital to consider education as a historically placed practice that is not divorced from what is going on in social life. Children learn to save by observing their parents’ actions.”

According to the National Commission for the Protection and Defense of Financial Services Users, 30% of young Mexicans are uninterested in developing a financial habit, and only 13% save a portion of their earnings.

Similarly, the Multiple Banking Institution, BBVA Mexico Financial Group, published an article on its website in 2021 aimed at the youth sector, with the goal of disseminating practices for the development of savings in daily life, among which stand out: make household purchases, in order to differentiate prices and make decisions; record expenses, keep a log of income and expenses; and the use of applications that help control finances is also recommended.

How can you put the habit of saving money into action?

Saving is appropriate for anybody, regardless of income level. With that in mind, the first important thing to do is to establish a savings target. The following suggestions can assist in promoting saving as a positive practice and habit:

Set a goal

The first thing to do each month is to set a savings goal, such as 10% of pay. Separate the amount that corresponds to savings from your income before you begin spending. If your savings are spent, you might not make it. It is critical to keep an emergency fund on hand at all times.

Make a budget

Maintain as detailed a record of your income and expenses as possible to keep track of your finances. This is a crucial tool for managing personal finances, as well as knowing how to prioritize certain disbursements above others and reduce or eliminate debts as much as feasible.

Financial planning

Pay your bills on time and don’t go over your borrowing limit, as this will show up on your credit report.

Eradicate unnecessary consumption

Advertising and consumerism culture will urge you to buy stuff you don’t need and that surpass your budget. Before purchasing anything, consider whether you truly require it.

Save money

Be cautious about where you keep your money. Help yourself with authorized entity goods, such as a bank savings account, which will also assist you in your financial history. Of course, the concept of hiding money at home under the mattress is timeless.

Where did the habit of saving money originate?

“Saving is a recent activity; it originated with the Christian generosity of the Franciscans, who were on the lookout for where societal changes and the crises that accompanied them were headed.” “At the time, they were attempting to improve the population’s quality of life and boost trade,” said the expert.

In the case of Mexico, the methods were adopted around the end of the nineteenth century, and savings banks were established, with loans continuing. In addition, the National Monte de Piedad, the principal lender reference, was established in 1775.

The procedure in children was advocated beginning on October 31, 1924, when a potential child was considered for it. Aguirre Lora emphasized that this date is known as World Savings Day, which is still observed today.

Plutarco Elas Calles, Mexico’s then-president, established a variety of programs to enhance the country’s population, including anti-alcoholism and reading campaigns.

Beginning in 1938, school bonds were marketed in the educational sphere, and minors were encouraged to purchase and lend them for the Oil Expropriation. School savings fairs have even been organized to promote understanding of this topic and its benefits. Banking organizations were more aware of this over time and began to offer kids the opportunity to open bank accounts.

Textbooks were not the tools to teach it as such, but rather the various activities that the system included into schools.